UPDATE: Nomura Maintains on Netflix, Raises PT

In a report published Thursday, Nomura analyst Anthony DiClemente maintained a Neutral rating on Netflix NFLX, raising its price target to $375.00 from $360.00. According to the report, while analysts remain positive on the market opportunity for NFLX within the context of their Neutral rating, they believe it is likely valued appropriately relative to growth expectations. “Netflix domestic subscriber additions for the quarter came in modestly ahead of our estimates, as did the guidance for 1Q estimates, and we acknowledge the traction in the underlying business,” the report noted. “However, Street expectations for FY15 may already be fully reflective of underlying optimism. Our new target price of $375 is based on a sum-of-the-parts valuation, which ascribes a 21x 2015 EV/EBITDA multiple to the domestic streaming business. The market expectation implies that Netflix is valued 60%-70% greater than HBO, and the market (including us) value Netflix at >20x 2015E EV/EBITDA, which is double the valuation multiples of HBO and Showtime. FY14E EPS from $3.72 to $3.52; FY15E EPS from $6.71 to $6.49.” NFLX closed Wednesday at $333.73.