Barclays Maintains an 'Overweight' on Netflix (NFLX); Streaming Expanded To Latin America
Tweet
Share
E-mailGet Alerts NFLX Hot Sheet
Price: $78.16 -0.1%
Rating Summary:
57 Buy, 26 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
57 Buy, 26 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Join SI Premium – FREE
Barclays maintains an 'Overweight' on Netflix (NASDAQ: NFLX), PT $315.
Barclays analyst says, "Earlier today Netflix announced that it plans to launch Watch Instantly in 43 countries across South & Central America and the Caribbean later this year. This compares to our previous expectation that Netflix would first launch in either Mexico or Brazil and then expand to other countries in the region. This announcement significantly expands Netflix's total addressable market in Latin America and likely makes our ending subscriber estimates for 2012 of 42.7 million (+37%) somewhat conservative."
"We have always viewed international expansion as a major growth area for Netflix. We currently project international subs to reach 1.5 million in 2012, ramping to 3 million in 2012. Netflix expects to incur $50-$70M in operating losses in 2H as it launches LatAm and its goal is to reach profitability within 2 years of launch. We note Canada expects to reach break-even in 3Q. NFLX generally renegotiates its content and CE agreements per country and/or region. But given fewer existing agreements on windowing and exclusivity exists across emerging markets, we believe content owners and distribution partners are more apt to expand their current relationships with Netflix."
For more ratings news on Netflix click here and for the rating history of Netflix click here.
Shares of Netflix closed at $289.63 yesterday.
Barclays analyst says, "Earlier today Netflix announced that it plans to launch Watch Instantly in 43 countries across South & Central America and the Caribbean later this year. This compares to our previous expectation that Netflix would first launch in either Mexico or Brazil and then expand to other countries in the region. This announcement significantly expands Netflix's total addressable market in Latin America and likely makes our ending subscriber estimates for 2012 of 42.7 million (+37%) somewhat conservative."
"We have always viewed international expansion as a major growth area for Netflix. We currently project international subs to reach 1.5 million in 2012, ramping to 3 million in 2012. Netflix expects to incur $50-$70M in operating losses in 2H as it launches LatAm and its goal is to reach profitability within 2 years of launch. We note Canada expects to reach break-even in 3Q. NFLX generally renegotiates its content and CE agreements per country and/or region. But given fewer existing agreements on windowing and exclusivity exists across emerging markets, we believe content owners and distribution partners are more apt to expand their current relationships with Netflix."
For more ratings news on Netflix click here and for the rating history of Netflix click here.
Shares of Netflix closed at $289.63 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- BMO Capital Reiterates Outperform Rating on Netflix (NFLX), Advertising Seen As a Key Lever
- McGraw Hill (MH) PT Raised to $15 at UBS
- Active options: NFLX HTZ MSTR NBIS PLTR SNDK CRWV MSFT ONDS ORCL CSCO
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
BarclaysSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
