Netflix (NFLX) PT Raised to $96 at Piper Jaffray Posts Q2
Piper Jaffray analyst Michael Olson raised his price target on Netflix (NASDAQ: NFLX) to $96.00 (from $70.00) while reiterating a Neutral rating following strong Q2 subscriber upside.
Olson commented, "Netflix reported Q2 upside for both domestic and international subs based primarily on a strong slate of new original content. Management reiterated that the company's global expansion plan will continue, including Japan in Q3, as well as Spain, Portugal and Italy in Q4, followed by all other markets in 2016, resulting in the company hovering around break-even profitability globally through 2016, after which global material profits are anticipated to be sustainably generated. We maintain our Neutral rating, with a positive long-term bias, based on our analysis that suggests EPS growth from '17-'20 will average ~99%. NFLX, however, has been a volatile name in recent years and while we expect the general trend to be "up and to the right," we also expect periodic pullbacks and would encourage investors to take advantage of more attractive entry points. PT of $96 (32x 2020E EPS, discounted back 4 years at 10%)."
The firm raised FY 2015 EPS from $0.12 to $0.22 and cut FY 2016 EPS from $0.69 to $0.39.
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 $98.13 yesterday.