Keep Away from Netflix (NFLX) Following 'Mixed' Q2 - Jefferies
Jefferies maintained an Underperform rating and $160 price target on Netflix (NASDAQ: NFLX) following what they called "mixed" Q2 results. The firm said the stock is still too expensive for them.
The Jefferies Internet Team led by Brian Fitzgerald commented, "2Q was mixed with somewhat disappointing US streaming sub adds offset by lower mktg costs and continued margin expansion. Originals like House of Cards received 14 Emmy nods, as Arrested Development (known quantity with cult following) also launched. With the associated publicity NFLX enjoyed its lowest S&M expense (% of rev) since 3Q'11. But at 109x our '14 EPS, NFLX is more expensive than when we d/g to Underperform (Apr) at 95x."
The firm raised Q3 EPS from $0.33 to $0.39, FY 2013 EPS from $1.22 to $1.38 and FY 2014 EPS from $2.29 to $2.39.
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 $264.58 yesterday, with a 52 week range of $52.81-$270.31.
The Jefferies Internet Team led by Brian Fitzgerald commented, "2Q was mixed with somewhat disappointing US streaming sub adds offset by lower mktg costs and continued margin expansion. Originals like House of Cards received 14 Emmy nods, as Arrested Development (known quantity with cult following) also launched. With the associated publicity NFLX enjoyed its lowest S&M expense (% of rev) since 3Q'11. But at 109x our '14 EPS, NFLX is more expensive than when we d/g to Underperform (Apr) at 95x."
The firm raised Q3 EPS from $0.33 to $0.39, FY 2013 EPS from $1.22 to $1.38 and FY 2014 EPS from $2.29 to $2.39.
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 $264.58 yesterday, with a 52 week range of $52.81-$270.31.