Citi Pounds Table on Netflix (NFLX); Says Consumer Satisfaction, Overall Trends Improving

Netflix (Nasdaq: NFLX) is ticking higher Wednesday morning following a bullish call by Citi earlier.

In fact, Citi calls it their "Screaming" Buy stock. The outlook comes following a recent survey in which customer satisfaction was not only stable, it was improving.

The firm surveyed about 3,800 U.S. Internet users and found the following things:

1. Overall customer satisfaction improved for the first time since Netflix looked to separate its DVD and streaming business last year. About 48 percent of respondants either Very or Extremely Satisfied, versus 44 percent and 45 percent in Q1 and Q2;
   
   
2. Netflix continues to be a top online video destination, moving from 25 percent in Q211, to 30 percent in Q112, and up to 35 percent with the latest figures;
   
   
3. The "not at all likely to" churn rate is at a year-to-date record of 57 percent; and
   
   
4. About 37 percent believe streaming content has improved, versus 16 percent who believe it has worsened.

Netflix has about 43 percent mobile penetration, which is better from a monetization standpoint. It is a subscription service, not paid-for-clicks service.

Visitors to the Company's website are down 3 percent in July and August, from a 7 percent drop in Q2.

Citi sees Netflix generating profits of about $5.50 per share in 2013.

In early trading, Netflix is up over 3.5 percent.

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