Netflix (NFLX) Price Target Raised to $140 at RBC
Get Alerts NFLX Hot Sheet
Rating Summary:
43 Buy, 27 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 13 | New: 18
Join SI Premium – FREE
(Updated - August 26, 2015 7:52 AM EDT)
RBC Capital reiterated an Outperform rating on Netflix (NASDAQ: NFLX) following the stock's recent correction and raised its price target to $140.00 (from $125.00). Analyst Mark S. Mahaney called the stock one of his top long ideas given positive US, UK and Brazil survey results.
Mahaney explained, "We ran our 16th quarterly 1,000+ U.S. Internet User survey. Key findings: 1) 49% of respondents use Netflix to watch Movies and TV shows – slight slippage from the 50% we tracked in May, but the 2nd highest level ever, with YouTube higher (50%), followed by Amazon (25%); 2) 68% of current subs are “Extremely satisfied” or “Very satisfied” – also slight slippage from May, but the 2nd highest level ever; & 3) Churn rates remain near record lows – only 5% of current subs are 'Extremely likely' or 'Very likely' to cancel their subscriptions, the 2nd lowest level recorded."
Commenting on traction in the UK, Mahaney said, "We ran our 6th UK survey of ~1,500 Internet users. Key findings: 1) Netflix usage rising sharply in UK – 30% of UK respondents use Netflix to watch Movies and TV shows – up from 25% in Sept. ’14 and 14% in August ’13, with only 12% selecting Amazon/LOVEFiLM; 2) Satisfaction levels reaching record highs – 76% of UK subs are either 'Extremely satisfied' or 'Very satisfied,' vs. 71% in Sept. ’14; & 3) Indicated churn rates reaching record low levels – 26% of UK subs are 'Extremely Likely' or 'Very Likely' to cancel, the lowest level we have tracked and down from 31% in Sept. ’14."
On Brazil, the analyst said, "We ran our 1 st Brazil survey of ~1,500 ‘Net users. Key findings: 1) Netflix usage remarkably high – 60% of Brazil respondents use Netflix to watch Movies & TV shows – less than YouTube @ 81%, but ahead of Globo at 50% & SBT at 40%; 2) Satisfaction levels extremely high – 94% of Brazil users are “Extremely satisfied” or “Very satisfied;” & 3) Churn rates similar to UK levels – 26% of Brazil subs are 'Extremely Likely' or 'Very Likely' to cancel vs. 71% 'Not at all likely' or 'Slightly likely.'"
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 $101.52 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Morgan Stanley Upgrades Macquarie Group Ltd. (MQG:AU) (MQBKY) to Overweight
- J.B. Hunt Transport Services (JBHT) PT Lowered to $200 at BMO Capital
- Netflix (NFLX) PT Raised to $685 at Macquarie
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS View, Analyst PT Change, Hot CommentsRelated Entities
RBC CapitalSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!