Benchmark raises ‘overly bearish’ Netflix price target, keeps Sell rating

Benchmark analyst Matthew Harrigan raised the firm’s price target on Netflix to $225 from a prior “overly bearish” $162 and keeps a Sell rating on the shares. Though he contends “there is a strong element of hubris in Netflix pricing advertising well above CPMs for AVOD rivals,” he also feels it is “premature to write-off” Netflix’s $6.99 ad-supported tier, Harrigan tells investors. Still, he remains cautious on Netflix in the wake of yesterday’s near 9% selloff in reaction to the Digiday article indicating it is not meeting viewership guarantees to advertisers.