MKM Partners Reiterates Buy on Netflix (NFLX) Ahead of 3Q Results
MKM Partners reiterated a Buy rating and $130.00 price target on Netflix (NASDAQ: NFLX) ahead of the company's 3Q15 earnings report. Analyst Rob Sanderson expects U.S. paid subscriber additions in the 1.2k to 1.3k range, below 1.4k consensus. NFLX will institute a $1/mo price increase again this year, grandfathering existing subs for one year. Sanderson does not anticipate meaningful subscriber churn or slowness in new additions. Even at the new price of $9.99 per month. NFLX is scheduled to release its earnings on October 14th.
Sanderson commented, "NFLX reports on Wednesday, October 14 after the market close. We expect U.S. paid subscriber additions in the 1.2k to 1.3k range, below 1.4k consensus. We expect international paid subscriber additions in the 2.6k to 2.7k range, above 2.4k consensus. We would not be concerned by somewhat softer U.S. additions in a seasonally weaker quarter for content slate, we believe the U.S. adoption curve remains healthy and we see international as the larger driver of value for the next several years. NFLX remains our highest conviction 3-4 year stock for material market cap expansion and we believe the stock should be a core holding for large cap growth investors."
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Shares of Netflix closed at $113.45 yesterday.