Netflix (NFLX) PT Bumped to $109 at Piper Jaffray
Piper Jaffray analyst Michael Olson reiterated a Neutral rating on Netflix (NASDAQ: NFLX) but bumped his price target to $109.00 (from $96.00) following results after the close.
Olson commented, "Netflix reported mixed Q3 sub adds, with domestic below and international subs above consensus. The company rolled out in Japan in Q3, anticipates launching in Spain, Portugal and Italy in Q4, and continues to expect to be "global" by the end of 2016. Management's expectations around EPS during this ongoing global expansion is breakeven 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 >150%. 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 look to take advantage of more attractive entry points. We are raising our PT to $109 (32x 2020E EPS, discounted back 4 years at 10%)."
The firm moved FY 2015 EPS from $0.22 to $0.21 and FY 2016 EPS from $0.36 to $0.21.
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Shares of Netflix closed at $110.23 yesterday.