Netflix Upgraded to Equal Weight at Morgan Stanley (NFLX)
Netflix (NASDAQ:NFLX) was upgraded by research analysts at Morgan Stanley from an “underweight” rating to an “equal weight” rating in a report released on Friday, TheFlyOnTheWall.com reports.
The analysts wrote, “would enter a period of slowing US sub growth before International users could offset the slowdown. We were wrong.” Following fourth quarter 2013 results, Morgan Stanley noted that increased the company’s international strength shielded any signs of domestic slowdown. Devitt commented that Netflix’s international business and could continue to significantly increase net sub adds with a European expansion in this year’s second quarter. The analyst reported that the European expansion may include Germany, France, Spain, and Italy. Devitt added, “These countries in aggregate represent an opportunity nearly the size of the US, and rolling out to these markets could significantly alter the trajectory of international sub adds.” Morgan Stanley further noted long-term opportunity from Latin American infrastructure improvements. The analyst reported that with inadequate bandwidth to stream Netflix in HD or DVD quality in Latin America. Devitt commented, “Data from Akamai suggest that these countries are dramatically improving their average bandwidth, and Latin America could be a much bigger opportunity over the next 3-5 years.” The analyst increased international streaming subs for 2014, 2015 and 2016 to 16.9M, 23.6M, and 30.3M, respectively. Devitt added that he expects “the current stock momentum should continue until the global subscriber trajectory moderates.”
Shares of Netflix (NASDAQ:NFLX) traded up 1.15% during mid-day trading on Friday, hitting $409.33. 3,378,098 shares of the company’s stock traded hands. Netflix has a 52-week low of $159.00 and a 52-week high of $412.40. The stock’s 50-day moving average is $364.2 and its 200-day moving average is $319.. The company has a market cap of $24.399 billion and a P/E ratio of 218.74.
Netflix (NASDAQ:NFLX) last released its earnings data on Wednesday, January 22nd. The company reported $0.79 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.65 by $0.14. The company had revenue of $1.18 billion for the quarter, compared to the consensus estimate of $1.17 billion. During the same quarter last year, the company posted $0.13 earnings per share. Netflix’s revenue was up 24.3% compared to the same quarter last year. Analysts expect that Netflix will post $4.08 EPS for the current fiscal year.
In other Netflix news, Director Leslie Kilgore sold 2,394 shares of the stock on the open market in a transaction that occurred on Tuesday, January 28th. The stock was sold at an average price of $405.00, for a total value of $969,570.00. Following the completion of the sale, the director now directly owns 13,028 shares of the company’s stock, valued at approximately $5,276,340. The sale was disclosed in a document filed with the SEC, which can be accessed through this link.
Other equities research analysts have also recently issued reports about the stock. Analysts at TheStreet upgraded shares of Netflix from a “hold” rating to a “buy” rating in a research note to investors on Wednesday. Separately, analysts at Needham & Company reiterated a “buy” rating on shares of Netflix in a research note to investors on Thursday, January 23rd. Finally, analysts at UBS AG raised their EPS on shares of Netflix in a research note to investors on Thursday, January 23rd. They now have an “underperform” rating and a $250.00 price target on the stock. Five equities research analysts have rated the stock with a sell rating, twenty-three have assigned a hold rating and thirteen have given a buy rating to the stock. The stock has a consensus rating of “Hold” and a consensus price target of $337.26.
Netflix, Inc is an Internet television network with more than 33 million members in over 40 countries.
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