Analysts expressed caution ahead of Netflix Inc. Q1 earnings, highlighting EMEA's churn risk, the company's second-largest region, due to potential consumer spending pressure tied to higher energy costs and broader inflationary pressures and loss of subscribers in Russia.
Baird analyst William Power noted that each 10 bps increase in churn could negatively impact EMEA net additions by 200,000.
Power maintained his Neutral rating and $420 price target (14 percent upside) on Netflix shares.
Stifel analyst Scott Devitt lowered the price target on Netflix to $460 from $500 (24.9 percent upside) and kept a Buy.
Devitt left his Q1 revenue estimates "largely unchanged" given that engagement data is tracking in line with his estimates and guidance.
Devitt hardened his 2022 estimates and beyond due to a more conservative approach to the subscriber and ARPPU growth on worsening macro conditions and continued uncertainty.