Netflix (NFLX) PT Raised to $115 at SunTrust Robinson Humphrey
SunTrust Robinson Humphrey analyst Robert Peck raised his price target on Netflix (NASDAQ: NFLX) to $115.00 (from $110.00) but maintained a Hold rating following better than expected Q3 and guidance.
Peck commented, "Netflix reported a better than feared 3Q, and guided to a strong 4Q, driven by the draw of original content, which more than offset any impact of ungrandfathering and Olympics. Revenue and Contribution Profits were better on higher ARPU. While we roll out 2017 year-end PT of $115 (from $100), we maintain Hold on: 1) lower FCF from increasing investment in original content with higher upfront cash costs, driven by competition and the need to localize, 2) intensifying diverse competition for screen time, and 3) premium valuation. Our PT implies ~40x 2018 EBITDA and ~60x P/E."
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 $99.80 yesterday.