Weekly Analysts’ Ratings Changes for Netflix (NFLX)
Netflix (NASDAQ: NFLX) received a number of price target changes and ratings updates during the last week:
- Netflix had its “hold” rating reaffirmed by analysts at TheStreet. They wrote, “Netflix (NFLX) has been reiterated by TheStreet Ratings as a hold with a ratings score of C. The company’s strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and generally higher debt management risk.”
- Netflix had its price target lowered by analysts at Northland Securities from $360.00 to $325.00. They now have an “in-line” rating on the stock.
- Netflix had its price target lowered by analysts at Northland Capital Partners from $360.00 to $325.00. They now have a “market perform” rating on the stock.
- Netflix ‘s EPS estimates were raised by analysts at UBS AG. They now have an “underperform” rating and a $250.00 price target on the stock.
- Netflix had its “neutral” rating reaffirmed by analysts at Nomura. They now have a $375.00 price target on the stock, up previously from $360.00. They wrote, “Netflix domestic subscriber additions for the quarter came in modestly ahead of our estimates, as did the guidance for 1Q estimates, and we acknowledge the traction in the underlying business,” the report noted. “However, Street expectations for FY15 may already be fully reflective of underlying optimism. Our new target price of $375 is based on a sum-of-the-parts valuation, which ascribes a 21x 2015 EV/EBITDA multiple to the domestic streaming business. The market expectation implies that Netflix is valued 60%-70% greater than HBO, and the market (including us) value Netflix at >20x 2015E EV/EBITDA, which is double the valuation multiples of HBO and Showtime. FY14E EPS from $3.72 to $3.52; FY15E EPS from $6.71 to $6.49.”
- Netflix had its “neutral” rating reaffirmed by analysts at Credit Suisse. They now have a $349.00 price target on the stock, up previously from $344.00. They wrote, “Netflix continued to demonstrate domestic subscriber growth momentum as the 1Q14 guidance parameters imply higher net adds versus last year,” the report noted. “Similar positive dynamics as well as decreasing losses in its International operations have prompted the company to announce expansion into additional European markets in 2014, which should not be a surprise. This should exert some near-to-medium term pressure on profitability but as these new territories follow the growth path demonstrated by the US and others, it should ultimately lead NFLX to higher operating profit and FCF dollars over the longer term. In the meantime, we maintain our Neutral rating on valuation but raise our price target modestly to $349 as we increase the growth trajectory of both domestic streaming and International subscribers, offset by decreases to DVD subscribers.”
- Netflix had its price target raised by analysts at RBC Capital from $440.00 to $500.00. They now have an “outperform” rating on the stock.
- Netflix had its “buy” rating reaffirmed by analysts at Needham & Company.
- Netflix was upgraded by analysts at CRT Capital from a “fair value” rating to a “buy” rating. They now have a $475.00 price target on the stock, up previously from $355.00.
- Netflix was upgraded by analysts at S&P Equity Research from a “sell” rating to a “hold” rating.
- Netflix had its “market perform” rating reaffirmed by analysts at FBR Capital Markets.
- Netflix was upgraded by analysts at TheStreet from a “hold” rating to a “buy” rating. They wrote, “Netflix (NFLX) has been upgraded by TheStreet Ratings from hold to buy. The company’s strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.”
- Netflix was upgraded by analysts at Morgan Stanley from an “underweight” rating to an “equal weight” rating. They 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 Inc. (NASDAQ:NFLX) traded up 1.15% on Friday, hitting $409.33. The stock had a trading volume of 3,378,098 shares. Netflix Inc. 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, Inc. is an Internet television network with more than 33 million members in over 40 countries.
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