UPDATE: Nomura Initiates Coverage on Netflix

In a report published Wednesday, Nomura analyst Anthony DiClemente initiated coverage on

with a Neutral rating, establishing a $360.00 price target. According to the report, as the addressable market for Internet video continues to grow, it is believed NFLX will maintain its position as the leading Internet video programmer. However, analysts also believe that street models already forecast healthy expectations for subscriber growth; while they are positive on original content and cable box integration, they do not believe these are material subscriber acquisition channels. “Netflix benefits from latent pricing power, in our view, but a price raise is unlikely. As such, we await a more attractive entry point for the stock,” the report noted. “Valuation Methodology: Sum of 3 parts; domestic, DVD, int'l; sum-of-the-parts using 2015E EV/EBITDA target of 20x on domestic streaming.” NFLX closed Tuesday at $337.96.