JPMorgan trims Netflix target to $425, sees 'more difficult' setup into Q4
JPMorgan analyst Doug Anmuth lowered his price target for Netflix to $425 from $450 while keeping an Overweight rating on the shares ahead of the company's Q4 results on January 17. Netflix shares are down 3% since its Q3 earnings report, outperforming the S&P 500 Index's down 8%, though with significant volatility as shares traded down as much as 32% intra-quarter before rallying 44% since December 24, Anmuth tells investors in a pre-earnings research note. The analyst believes investor sentiment has "turned positive very quickly," making Netflix's Q4 earnings setup "more difficult." However, he remains positive on the shares into the earnings print as he believes the company's content performed well and likely exceeded management expectations. Further, Anmuth believes Q1 net subscriber addition expectations for Netflix are reasonable.