Netflix (NFLX) PT Raised to $125 at Oppenheimer; Originals Driving Sub Growth
Oppenheimer analyst Jason Helfstein reiterated an Outperform rating and bumped his price target on on Netflix (NASDAQ: NFLX) to $125.00 (from $111.00) following strong subscriber growth.
commented, "We are increasing our price target to $125 from $111 (post-split) after NFLX reported 2Q15 global net subscriber additions 32% above Street estimates. We believe Originals are driving better financial results, as exclusive programming is lowering churn, resulting in lower marketing spending. As a result, US contribution profit was 4% above Street. Management plans to leverage higher domestic profit to accelerate Int'l growth. Excluding currency, Int'l rev rose 75% y/y vs. +73% in 1Q. We believe accelerating Int'l subs should alleviate investor concerns from not hedging currency. In our opinion, NFLX is the best global play in the shift to multi-platform video content."
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Shares of Netflix closed at $98.13 yesterday.