Netflix (NFLX) PT Raised to $142 at FBR Capital on Back of Strong Results
FBR Capital analyst Barton Crockett reiterated an Outperform rating and raised his price target on Netflix (NASDAQ: NFLX) to $142.00 (from $129.00) following better-than-expected results.
Crockett commented, "Netflix, Inc.'s (NFLX) 2Q15 earnings report highlighted a growth story that is working better than we anticipated when we upgraded earlier this year with a split-adjusted price target of $129. Subscriber growth is more robust than we anticipated. Expenses are lower, arguing for a better earnings opportunity than we had expected and resulting in a 10% hike to our price target, to $142. As we said when upgrading the stock, our proprietary survey work with ClearVoice Research LLC showed that consumers are liking Netflix as much as, or more than, pay TV, which argues for subscriber and pricing upside and lessens the need to aggressively grow content spending (which equals big margin growth potential), with over $700M of contribution profit from each $1.00 effective ARPU hike, and over $100M from each addition of 1 million subs."
The firm raised 2015 operating profit estimate $45M, to $246M, and 2016 $118M, to $160 million.
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Shares of Netflix closed at $98.13 yesterday.