Netflix Stock Gets a Buy Stamp After Q1 | Pro Recap

(CTN News) – Your daily Pro Recap includes the biggest analyst picks since yesterday, including Netflix and ExxonMobil rating increases.

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UBS upgrades Netflix after Q1 revenue and guidance miss

A day after Netflix (NASDAQ:NFLX) reported worse-than-expected Q1 revenue results and guidance, UBS upgraded the stock to Buy from Neutral and raised its price target to $390.00 from $350.00.

Revenue in Q1 was $8.16 billion, which was lower than the consensus estimate of $8.17 billion, while earnings per share were $2.88, which was higher than the consensus estimate of $2.86 billion. Streaming paid net additions worldwide are estimated to be around 1.75 million, which is lower than the consensus estimate of 2.41 million.

A revenue estimate of $8.24 billion for Q2 is below the consensus estimate of $8.47 billion.

At the time of writing, the stock is trading just around 1% lower pre-market, after recovering from an after-hours loss of nearly 11%.

While peers focus on profits, UBS believes Netflix will benefit most from the easing of competition in DTC in the coming years, while also containing the costs of content.

Netflix is expected to re-accelerate its revenue growth to 10%+, while driving 200-300 basis points of annual margin expansion amid relatively stable content spending. As a result, UBS anticipates a 20%+ profit CAGR and $6.1B/$8.4B in free cash flow in 2024/2025.

A buy rating has been assigned to ExxonMobil ahead of its Q1 report

As a result of the upgrade, UBS has upgraded ExxonMobil (NYSE:XOM) to Buy from Neutral and increased its price target to $144.00 from $125.00.

A report on the company’s earnings for the first half of the year will be released on April 28. It is estimated that $2.61 per share will be earned and $82.66 billion will be generated by the company.

JMP Securities upgrades LegalZoom.com and forecasts growth through 2023

A price target of $14.00 has been set by JMP Securities for Netflix LegalZoom.com (NASDAQ:LZ), as the company has fully rolled out “free” marketing, which the firm believes will accelerate share gains through 2023.

Improvements in freemium attach rates, increased share gains (including traffic share in Q1/23), and continued expense discipline have all alleviated the firm’s concerns at the time of the downgrade.

Yesterday, the shares closed more than 9% higher.

2 more upgrades

In response to a presentation of IMM-1-104 data at AACR yesterday, Mizuho Securities upgraded Immuneering from Neutral to Buy and raised its price target from $10.00 to $20.00.

Accordingly, Morgan Stanley upgraded the stock to Equalweight from Underweight and raised its price target to $14.00 from $5.00.

From Neutral to Outperform, Baird raised its price target for Global Payments (NYSE:GPN) to $156.00 from $130.00.

A report on the company’s Q1/23 earnings will be released on May 4. EPS is expected to be $2.30 and revenues will be $2B, according to consensus estimates.

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