Close

BMO Capital Starts Netflix (NFLX) at Market Perform

October 8, 2015 4:16 PM EDT
Get Alerts NFLX Hot Sheet
Price: $613.53 --0%

Rating Summary:
    43 Buy, 27 Hold, 4 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 13 | Down: 10 | New: 10
Join SI Premium – FREE

BMO Capital initiates coverage on Netflix (NASDAQ: NFLX) with a Market Perform rating and a price target of $115.00.

Analyst Dan Salmon commented, "With Netflix the focal point for disruption of the traditional TVecosystem, we believe NFLX shares properly value the opportunity and the inherent risks of this position and would look for a pullback or incremental news (e.g., faster-than-expected international expansion) to get more productive on the stock. With high volatility around the quarters – largely driven by subscriber growth performance versus guidance and expectations – investors tend to get opportunities regularly. In the report, we offer country-by-country subscriber estimates for the burgeoning international opportunity and detailed scenario analyses for subscribers, revenue, and contribution profit for both the international and domestic streaming segments. Key variables in these analyses and for our view on the stock – in addition the trajectory of subscriber growth –- include: 1) the evolution of Netflix’s content acquisition strategy to focus more on originals (and thus more cash outlays upfront) and the ability to secure global rights for programming; 2) pricing power for the service, especially in the United States (we compare cost per hour viewed for Netflix vs. major premium cable networks and the pay TV bundle as a whole in the report); and 3) a risk of accelerating marketing expense growth as competition increases, new markets are entered, andpremiering originals are in need of promotion. But all in all, we view Netflix as ahighly dynamic company and an innovation leader in our coverage universe."

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 $108.10 yesterday.



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Analyst Comments, New Coverage

Related Entities

BMO Capital, Definitive Agreement