Cantor Fitzgerald Boosts PT on Netflix (NFLX), Says Disney Deal a Boon
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Price: $79.59 -0.69%
Rating Summary:
57 Buy, 26 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
57 Buy, 26 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Cantor Fitzgerald raised its price target on Buy-rated Netflix (NASDAQ: NFLX) from $85 to $110.
The firm said the new target "reflects a lower discount rate to account for a diminishing risk profile following the Disney deal, recent changes to the competitive landscape and slightly higher net-adds beginning in FY:16 as Disney's premium/exclusive content comes to the service."
Analysts at Cantor note the deal with Disney reaffirms their belief that Netflix has become the company to beat in over-the- top video.
"Strategically, we view the transaction positively and as one that should drive more subscriber growth and attenuate churn over time."
The firm estimates the deal will cost $300M/yr beginning in 2016 (~$100M/yr near-term for catalog content) and that Netflix would need to add ~3.2M domestic streaming subscribers at $8/mo to absorb the cost.
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 $93.30 yesterday.
The firm said the new target "reflects a lower discount rate to account for a diminishing risk profile following the Disney deal, recent changes to the competitive landscape and slightly higher net-adds beginning in FY:16 as Disney's premium/exclusive content comes to the service."
Analysts at Cantor note the deal with Disney reaffirms their belief that Netflix has become the company to beat in over-the- top video.
"Strategically, we view the transaction positively and as one that should drive more subscriber growth and attenuate churn over time."
The firm estimates the deal will cost $300M/yr beginning in 2016 (~$100M/yr near-term for catalog content) and that Netflix would need to add ~3.2M domestic streaming subscribers at $8/mo to absorb the cost.
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 $93.30 yesterday.
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