Netflix (NFLX) PT Raised to $120 at Canaccord Genuity
Canaccord Genuity analyst Gregory Miller reiterated a Buy rating and raised his price target on Netflix (NASDAQ: NFLX) to $120.00 (from $80.00) on stronger-than-expected results and guidance.
Miller commented, "Once again Netflix reported very strong subscriber gains for 2Q15 beating both Street and our expectations with 3Q15 guidance that is also better than expected. We believe the company is at an inflection point where the meaningful addition of original content and rapid expansion to additional countries are responsible for the generation of additional subscribers overshadowing the additional cost pressures and near-term margin compression that is expected for 2015. With the clear success of stimulating incremental demand in the US market that has been thought to be increasingly saturated, we believe we will continue to witness meaningful investments in additional content that will in turn drive further subscriber gains. With that and the international gains that continue to exceed expectations even though no new markets were launched in 2Q15, we believe the stock’s performance will continue to reflect the strength of the subscriber gains. Accordingly, we reiterate our BUY rating and increase our price target from $80 (split adjusted) to $120, which remains based upon our discounted cash flow valuation analysis."
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Shares of Netflix closed at $98.13 yesterday.