UPDATE: Stifel Upgrades Netflix (NFLX) to Buy, 'Pushing Past Pandemic Pull Forward'
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Stifel analyst Scott W. Devitt upgraded Netflix (NASDAQ: NFLX) from Hold to Buy with a price target of $560.00 (from $550.00).
The analyst comments "We are upgrading shares of Netflix to Buy from Hold with a $560 12-month TP, ~12% above the $500 after-hours share price level. Netflix is a globally dominant company in media distribution that should experience mid-teens intermediate-term revenue growth with rising operating margins and significant free cash flow generation. We have been waiting for Netflix to have the quarter in which the pull forward became evident and the 1Q:21 results served as that moment. We expect a 3-to-9 month period of working through the remaining COVID comp issues followed by a multi-year period in which the stock can compound at a rate consistent with revenue growth or ~15% per annum, allowing for some multiple compression given rising operating margins. Netflix is a blue-chip consumer technology company that should be accumulated on the share price weakness created by COVID comps against what remains a compelling long-term growth story, in our view. Buy, $560 TP."
Shares of Netflix closed at $549.57 yesterday.
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