Netflix (NFLX) Maintained 'Neutral' at Nomura Post Q2; PT Raised to $425

Nomura Securities analyst Anthony DiClemente reiterated a Neutral rating and bumped his price target on Netflix (NASDAQ: NFLX) to $425.00 (from $405.00) following Q2 results.

DiClemente comments, "Netflix reported 2Q U.S. streaming subscriber net additions modestly ahead of guidance, though lower than in the prior-year quarter; the most notable upside to our model was guidance for 3Q international subscriber additions of +2.36mn versus our prior +1.15mn estimate. Nomura is modestly raising 2015E subscriber estimates; it remains difficult to value Netflix using EPS or FCF multiples, as 3Q EPS guidance was modestly below current Street EPS estimates, and they believe 4Q EPS will be tweaked lower, as the company rightfully invests in its core business. Nomura is modestly raising our target multiple on the domestic business to 20x 2015E EV/EBITDA, and as a result, Nomura increases the target price to $425 from $405."

The firm adjusted FY 2014 EPS form $2.78 to $2.98 and FY 2015 EPS from $6.19 to $6.06.

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 $451.95 yesterday.

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