UPDATE: Cantor Fitzgerald Initiates Coverage on Netflix with Buy Rating, $70 PT

In a report published Friday, Cantor Fitzgerald initiated coverage on Netflix (NASDAQ: NFLX) with a Buy rating and $70.00 price target.

Cantor Fitzgerald noted, “We are initiating coverage of Netflix with a BUY rating and $70 price target. Netflix pioneered over-the-top and has enormous global growth potential, in our opinion, as entertainment continues to shift to internet-based ondemand platforms. The key to our thesis is that over the intermediate/longer-term, revenue and subscriber growth should outpace content costs as international markets turn profitable and content spend is allocated over a growing subscriber base. We believe shares have overreacted to near-term profitability concerns, providing patient investors with a very attractive entry-point.”

Netflix closed on Thursday at $56.06.

(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.