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Despite declining subscribers, PhillipCapital is still watching Netflix

Chloe Lim
Chloe Lim4/25/2022 02:30 PM GMT+08  • 3 min read
Despite declining subscribers, PhillipCapital is still watching Netflix
Netflix lost 700,000 subscribers from Russia as it suspended services due to the ongoing conflict
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PhillipCapital Group Research analyst Jonathan Woo has kept a “buy” rating on Netflix with a target price of US$427.

Netflix’s 1QFY2022 ended March results were in line with the analyst’s expectations, where revenue was 24% and patmi at 29% of forecasts. Looking forward, Woo has reduced patmi forecast for FY2022 by 2% on the back of a weaker overall growth outlook.

Nonetheless, Woo likes the stock for its earnings per share (EPS) beating company guidance by 23%. EPS for 1QFY2022 came in at US$3.53, beating previous guidance of US$2.86. The main reason for this were the effects of subscription price increases in several parts of the world that boosted net margins to 20.3%, compared to guidance of around 17%.

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