Netflix (NFLX) PT Raised to $400 at Oppenheimer

Oppenheimer analyst Jason Helfstein raised the price target on Netflix (NASDAQ: NFLX) to $400.00 (from $385.00) while maintaining an Outperform rating

The analyst commented, "We raise our target to $400 from $385, maintain our Outperform as 4Q19 int'l subscribers drove 4Q upside, and should create enough buffer in 2020 against new competitor launches in the US. While 4Q US/Canada net adds were modestly lower than expected, the miss was too small to matter. More important, FY20 subscriber cadence should be similar to FY18, suggesting a more even launch schedule (no 2Q weakness), implying that new content volume has reached a sustainable level. Mgmt believes that FY19 was peak FCF deficit, with absolute FCF and cash content/cash amortization ratio improving in FY20. Long term, mgmt still targets 30%-40% EBITDA margins. Our target assumes 4x/9x '21E US/int'l sales, growing 14%/35%, respectively."

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