Piper Jaffray Upgrades Netflix (NFLX) to Overweight

Piper Jaffray upgraded Netflix (NASDAQ: NFLX) from Neutral to Overweight with a price target of $122.00, saying concerns around a domestic slowdown and competition creates an attractive entry point.

Analyst Michael Olson commented, "NFLX is down ~30% in the past two months due to concerns around slowing domestic growth and competition. We believe these issues, and the offsetting positive tailwinds of international growth, are reasonably reflected in our estimates and valuation methodology, which result in a NFLX price target of $122 (unchanged). Based on this, we are upgrading NFLX to Overweight from Neutral and recommend taking advantage of this pullback to build/increase positions. Our consistent commentary on NFLX has been that it is a volatile name and while we expect the general trend to be "up and to the right," we also expect periodic pullbacks and would look to take advantage of attractive entry points; we believe this is one of those opportunities. Our subscriber growth, margin and other assumptions remain unchanged, but we are slightly lowering our PT multiple based on recent domestic slowdown and potential for increased competitive intensity. "

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 $94.09 yesterday.

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