Nomura Securities Raises Price Target on Netflix (NFLX) Ahead of 3Q15 Earnings
Nomura Securities reiterated a Buy rating on Netflix (NASDAQ: NFLX), and raised the price target to $125.00 (from $120.00), ahead of the company's 3Q15 earnings results. Nomura is forecasting 1.17mn net domestic additions in the quarter, and believes 3Q15 benefited from the popularity of Narcos and Wet Hot American Summer.
Analyst Anthony DiClemente commented, "Ahead of Wednesday’s 3Q earnings report, we preview the key trends for Netflix. We remain bullish on 2H subscriber growth on consistent content offerings and traction in newly launched markets. We believe that pricing increases in Europe over the summer and last week’s announcement for a similar increase in the US indicate confidence in the inelasticity of Netflix demand. These increases underscore long-term upside to ARPU, a core tenet of our thesis. While we remain bullish on growth and increase our target price to $125 from $120, valuation gets more difficult at these levels."
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Shares of Netflix closed at $113.45 yesterday.