Janney Lifts Netflix (NFLX) PT to 'Street High' $190
Janney Montgomery Scott analyst Tony Wible raised his price target on Buy-rated Netflix (NASDAQ: NFLX) from $129 to $190 following Q4 results. This is a new 'Street high.'
Wible comments, "We maintain NFLX at BUY, as we believe the company will benefit from a reduced float that will amplify improving fundamentals. Recent developments, including the DIS deal, the potential for a Sony deal, and the new CDN platform, are changing how Studios, MSOs, and investors approach the company. Expectations for sub growth have come down, and sell side sentiment is generally pessimistic, setting the stage for upside driven by new subs, content cost control (for existing content), and a potential price increase. Competition has not yet materialized to the extent that it poses significant near-term risk. While we still believe NFLX earnings growth will be subdued in the foreseeable future, in part due to international expansion costs, we believe investors will increasingly look past this and value the company on its longer term growth potential, implying that a higher multiple can be sustained. We are increasing estimates for FY13 and FY14, and also raising our fair value to $190 to reflect our higher TAM value."
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 $103.26 yesterday, with a 52 week range of $52.81-$133.43.
Wible comments, "We maintain NFLX at BUY, as we believe the company will benefit from a reduced float that will amplify improving fundamentals. Recent developments, including the DIS deal, the potential for a Sony deal, and the new CDN platform, are changing how Studios, MSOs, and investors approach the company. Expectations for sub growth have come down, and sell side sentiment is generally pessimistic, setting the stage for upside driven by new subs, content cost control (for existing content), and a potential price increase. Competition has not yet materialized to the extent that it poses significant near-term risk. While we still believe NFLX earnings growth will be subdued in the foreseeable future, in part due to international expansion costs, we believe investors will increasingly look past this and value the company on its longer term growth potential, implying that a higher multiple can be sustained. We are increasing estimates for FY13 and FY14, and also raising our fair value to $190 to reflect our higher TAM value."
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 $103.26 yesterday, with a 52 week range of $52.81-$133.43.