Netflix shares rose more than 3% in premarket trading.
Netflix and Spotify were each upgraded to buy from neutral by Citi as part of a look at subscriber-based stocks after significant pressure. Prevailing equity values, argue the analysts, don't assume material subscription growth or improving economics beyond 2023. "While Netflix and Spotify may see more modest sub growth, we see other top-line vectors. For Netflix, we believe the firm has ample pricing power. For Spotify, we believe the firm can improve ad-supported monetization," they said. The analysts lowered target prices on Netflix, Spotify, Roku, DraftKings and Robinhood, with Netflix's target falling to $450 from $595.
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