Cantor Upgrades Netflix (NFLX) to Buy; $41 PT

March 20, 2008 8:10 AM EDT

Cantor Fitzgerald upgrades Netflix (Nasdaq: NFLX) from Hold to Buy and raises its price target from $24 to $41.

The firm says Blockbuster's (NYSE: BBI) recent initiatives to refocus on the profitability of its retail operations has created a significant window of opportunity for Netflix. Cantor cites Netflix's competitive advantages as scale, logistics expertise, and usage data, and believes that the market is not yet pricing in the possibility of this window being open for "a significantly longer period of time" than previously expected.

Cantor notes that Netflix currently has about 30% or more of its float shorted, possibly suggesting that the Company's uptrend could be intensified by a short squeeze.

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

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