Piper Sandler analyst Thomas Champion downgraded Netflix to Neutral from Overweight with a price target of $293, down from $562. The company’s Q1 subscriber net adds of negative 200,000 badly missed Piper’s forecast and guidance of 2.5M, Champion tells investors in a research note. In addition, management tone was “subdued” and comments point to a host of issues impacting the go-forward subscriber trajectory including the macro environment, connected TV adoption, password sharing and competition, Champion tells investors in a research note. The analyst says Netflix subscriber losses continued into Q2 and that its revenue growth will be lower, likely into 2023. “It’s a lower growth, lower visibility model, prompting us to move to the sidelines,” writes Champion.
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