Netflix (NFLX): Sloppy Churn Quarter Ahead But 4 Year Return Could Be 3x - MKM

October 12, 2016 11:07 AM EDT
Get Alerts NFLX Hot Sheet
Price: $126.90 -0.06%

Rating Summary:
    31 Buy, 21 Hold, 12 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 25 | Down: 27 | New: 8
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MKM Partners analyst, Rob Sanderson, reiterated his Buy rating on shares of Netflix (NASDAQ: NFLX) ahead of Q3 earnings on Monday, October 17 after the market close.

The analyst expects a strong quarter for revenue growth as price increases drive ARPU acceleration and a sloppy quarter for net paid subscriber additions from churn.

The analyst stated "despite transitory subscriber growth headwinds, price increases are a clear positive for profit contribution and we believe the long-term bull thesis is intact". The analyst believes the NFLX shares can return 2x to 3x over the next four years.

No change to the price target of $130.

For an analyst ratings summary and ratings history on Netflix click here. For more ratings news on Netflix click here.

Shares of Netflix closed at $100.59 yesterday.

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