Netflix (NFLX) PT Raised to $780 at Needham & Company

Needham & Company analyst Laura Martin reiterated a Buy rating and boosted her price target on Netflix (NASDAQ: NFLX) to $780.00 (from $600.00).

Martin commented, "NFLX has been weak thanks to Alibaba’s newly announced streaming service, but we never had China in our estimates and we don’t expect a negative impact on rest of world. We introduce FY16 estimates of revenue of $8.45B (up 23% y/y), and GAAP EPS of $3.45 (up 90% y/y), and raise our Target Price to $780 (from $600), up 20%. Financial upside in the US should be driven by Charter (and others) offering Netflix, driving US subscriber over-delivery. Offshore, we believe that NFLX’s international subscribers have 2-3x faster profit trajectories than in the US, suggesting higher ROICs, and therefore higher lifetime value per subscriber than US subscribers. Buying content globally should create higher barriers to entry, or lower costs vis-à-vis competitors. Someday, we believe NFLX will add advertising revenue."

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 $654.02 yesterday.

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