UPDATE: Netflix (NFLX) PT Raised to $450 at Barclays
(updated to add analyst comment)
Barclays raised its price target on Netflix (NASDAQ: NFLX) to $450.00 (from $370.00) while maintaining a Overweight rating.
Analyst Kannan Venkateshwar remains positive on the company noting the valuation is not too far away from legacy media business which he says are growing much slower than NFLX. The analyst believes the name even appears cheap relative to names like Spotify (NYSE: SPOT).
Further the analyst notes "...NFLX is likely to trade on the overall view toward owning tech and it is unlikely to be immune to sector volatility. ETF flows have had a disproportional positive impact on the group for the past few years, so if we were to see a reversal, one can assume NFLX would get caught up."
Venkateshwar likes the virtuous cycle of content/distribution scale and consumer inertia, pricing power, international TAM, management/execution quality, and longer-term operating leverage.