Citigroup Updates Long Thesis on Netflix

Citigroup has published a research report on Netflix

and is updating it's long thesis on the company. In the report, Citigroup writes, "Netflix remains one of the most controversial stocks we cover (along with Groupon). But given the recent material correction, we view valuation as highly reasonable -- one can now buy NFLX at a 12X P/E for its Domestic business (DVD & Streaming) and get a “free” call option on its International segment. Competition remains a very significant risk, but NFLX's execution track record – even with the H2:11 pricing and product mistakes – is relatively strong. And the Netflix Streaming story is still early days, given the relatively recent take-up of Tablets, Smart TVs, Mobile Broadband devices, etc." Citigroup maintains its Buy rating and $130 price target on Netflix, which is currently trading up 3.95% from yesterday's closing price.