Netflix: BMO Reiterates $700 Price Target Ahead Of Earnings

Netflix (NASDAQ: NFLX) is expected to report its third-quarter financials on today with a call after hours. BMO Capital Markets released a note reiterating their $700 price target and Outperform rating, showcasing their estimates for this quarter. The consensus revenue analyst estimate is $7.47 billion with a 45% gross margin and a net income of $1.15 billion.

Netflix currently has 45 analysts covering the stock with an average 12-month price target of $625.38. Out of the 45 analysts, 13 have strong buy ratings, 20 have buys, 8 have hold ratings, 3 have sells and 1 analyst has a strong sell on the stock. The street high sits at $971 from Elazar Advisors, while the lowest price target sits at $340.

In BMO’s note, they attribute the smash success of Squid Game for the reinvigoration of the stock and subscriber optimism. They write, “We think risk/reward tilts to the upside still, but we are moving the stock a notch down our pecking order owing to stock price performance.”

For subscribers, BMO estimates that they will get 3.5 million new adds for the quarter with Europe, Middle East, and Africa netting 1.575 million new adds and only 0.139 million new adds from Canada and the United States. This will bring Netflix’s total subscribers to 212.68 million. BMO has elected to lower fourth quarter new additions to 9.033 million from 10.208 million.

Lastly, BMO expects that Netflix will start to generate free cash flow during 2021 and, “drive substantial growth through 2030.” They expect free cash flow to reach $24.7 billion, while in the near term they expect free cash flow of $4 million, growing to $1.1 billion in 2022. They expect $600 million in buybacks during the third quarter, $800 million next quarter, and $3.5 billion for the full year 2022.

Below you can see BMO’s 2021 and 2022 estimates below.


Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

America Uses More Copper Than It Makes | Simon Quick – Canadian Copper

Gold Bulls Run Faster Than New Mines?! | Thomas Mumford – Scottie Resources

Is This the Start of a New Gold Rush | Russell Ashton – Juggernaut Exploration

Recommended

ESGold Secures $9 Million In Non-Dilutive Funding From Ocean Partners

Altamira Gold Encounters Porphyritic Intrusive Rocks In Initial Scout Drilling At Regional Targets

Related News

Canopy Growth: Analysts Anticipate Q1 Revenues Of $149 Million

Canopy Growth Corp (TSX: WEED) (NASDAQ: CGC) announced that they will be reporting their fiscal...

Tuesday, August 3, 2021, 03:28:00 PM

CloudMD: Canaccord Lowers Target After Leading $55 Million Bought Deal

On March 9th, CloudMD Software & Services (TSXV: DOC)  announced that their C$55 million bought...

Tuesday, March 16, 2021, 04:08:00 PM

Canopy Growth Sees Canaccord Cut Price Target To Just $4.50 After Terrible Q4 Results

On May 27, Canopy Growth (TSX: WEED) reported its fiscal fourth-quarter financial results for the...

Sunday, June 5, 2022, 11:18:00 AM

Ascot Resources Sees BMO Lower Target To $1.25 Following Construction Delays

On June 23rd, Ascot Resources (TSX: AOT) provided investors with a series of updates. In...

Sunday, June 26, 2022, 11:07:00 AM

BMO: Kinross Gold’s Russian Operations Expected To Be Closed Until At Least September

On March 2nd, Kinross Gold Corporation (TSX: K) announced the suspension of its Russian operations....

Saturday, March 5, 2022, 01:08:00 PM