Goldman Sachs Raises Price Target on Netflix (NFLX) On LatAm Expansion
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Price: $76.49 -2.14%
Rating Summary:
57 Buy, 26 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 20
Rating Summary:
57 Buy, 26 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 20
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Goldman Sachs raised their price target on Netflix (NASDAQ: NFLX) from $300 to $330 following recent news the company is launching in 43 countries throughout Latin America and the Caribbean this fall. The firm maintained their Buy rating.
Goldman views the LatAm news as a positive due to the large and growing number of broadband households, which at 37 million is 3.5x Canada. The firm also cited the lack of competition and the popularity of U.S. content in the region. In addition, with low DVR/VOD penetration, there are few substitutes.
The main push-back will be the region's slow broadband speeds, but Goldman is not overly worried as Netflix will set its "Good" product like it does in Canada, which limits video/audio speeds at 625 kbps/64 kbps.
Goldman raised 2012 EPS estimates on NFLX from $6.87 to $6.96 and 2013 from $8.95 to $9.65 on slightly higher sub estimates, higher APRU and better margins.
For more ratings news on Netflix click here and for the rating history of Netflix click here.
Shares of Netflix closed at $295.14 yesterday.
Goldman views the LatAm news as a positive due to the large and growing number of broadband households, which at 37 million is 3.5x Canada. The firm also cited the lack of competition and the popularity of U.S. content in the region. In addition, with low DVR/VOD penetration, there are few substitutes.
The main push-back will be the region's slow broadband speeds, but Goldman is not overly worried as Netflix will set its "Good" product like it does in Canada, which limits video/audio speeds at 625 kbps/64 kbps.
Goldman raised 2012 EPS estimates on NFLX from $6.87 to $6.96 and 2013 from $8.95 to $9.65 on slightly higher sub estimates, higher APRU and better margins.
For more ratings news on Netflix click here and for the rating history of Netflix click here.
Shares of Netflix closed at $295.14 yesterday.
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