Netflix Inc. shares (NFLX) slid 2% in premarket trade Wednesday, after SunTrust Robinson Humphrey slashed its stock price target to $355 from $410 and said it expects fourth-quarter subscriber additions to be slightly below consensus and the company's own guidance. Analysts led by Matthew Thornton said content released in December, including a Taylor Swift concert, the film "Bird Box" starring Sandra Bullock and a film length "Black Mirror' episode should close the gap. "But meaningful 4Q upside looks unlikely. We're updating our model (recent debt raise; 2019 quarterlies) and lowering our price target to $355 (higher rates, lower comp multiples) based on DCF (discounted cash flow)," they wrote in a note. SunTrust is sticking with its buy rating on the stock, however, as it expects an improved content slate heading into mid-year. Reports that the company is about to hire a new CFO--Spencer Neumann from Activision Blizzard Inc. (ATVI)--would also be a positive, if true, said the note. Shares have gained 33% in the last 12 months, while the S&P 500 has fallen 7%.
-Ciara Linnane; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
January 02, 2019 07:39 ET (12:39 GMT)
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