Citi expects Disney to surpass Netflix in subscriber growth in 3 years

Pergamon Status Dis Ticaret

14/01/2021 12:11

** Citi Research prefers Walt Disney Co  DIS.N  to Netflix
Inc  NFLX.O ; says stable subscription prices for DIS, which
entered the video streaming market late, calls for quicker
subscriber growth in the next 3 years 
    ** We suspect Netflix may have some hiccups over the next
few quarters as price hikes potentially dampen quarterly net
adds - Citi
    ** Also says, higher quality content (based on user
reviews), flexible pricing will likely give Disney the lead in
terms on subscribers by 2022 or 2023
    ** Raises NFLX PT to $580 from $450, and DIS PT to $205 from
$175 
    ** Shares of video streaming giant and legacy media co up
marginally before the bell 
    ** Avg. rating of 45 analysts on NFLX is "buy", their median
PT is $575, while on DIS, 29 analysts on average say "buy",
their median PT is $185 - Refinitiv data 
    ** In 2020, Disney's shares were up 25%, while Netflix
jumped 67% 

 (Reporting by Eva Mathews in Bengaluru)
 ((eva.mathews@thomsonreuters.com))