Piper Jaffray Raises PT on Netflix to $45; Reiterates Buy (NFLX)

April 18, 2008 9:34 AM EDT

Piper Jaffray reiterates its Buy rating on Netflix (Nasdaq: NFLX) and raises its price target from $40 to $45. The firm currently has Netflix on its Alpha List.

The firm attributed Netflix's raised price target to "expectations for continued outperformance in '08."

As Netflix's is expected to report Q1 earnings after the market close on Monday, Piper believes the Company will report about $0.03-$0.05 higher than the Street's current estimate. The firm feels Netflix's Q2 EPS guidance will be in-line with Street estimates of $0.39.

Piper said its confidence in Netflix's comes from:

• Netflix.com traffic is still uutperforming Blockbuster.com, possibly indicating a continued market share shift; and
  
• lower SAC that could boost EPS.

Piper Jaffray's positive note is interesting as it still sees upside in light of Netflix shares that are up about 17% over the last two weeks and about 50% year-to-date.

Netflix, Inc. provides online movie rental subscription services in the United States. [BCS]

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