Citi sees Netflix trading lower as bull 2025 earnings hopes get ‘dashed’

Citi keeps a Neutral rating on Netflix with a $675 price target saying bulls expect $25 of earnings per share next year. This may require 15% sales growth driven by net additions as well as U.S. and non-U.S. price hikes, the analyst tells investors in a research note. Citi believes the consensus net adds estimate of 20M is likely. While U.S. price hikes of 12% is reasonable, Citi does not expect non-U.S. average revenue per user to rise by 5%, the analyst contends. As such, the firm does not think Netflix’s 2025 revenues will grow 15% nor will its earnings per shared reach $25. Citi expects the stock to trade higher on a U.S. price hike announcement, but thinks the shares to eventually trade lower as investor’s hopes for $25 in 2025 earnings per share “are dashed.”