UPDATE: Raymond James Upgrades Netflix Following Q1 Earnings
On Tuesday, Raymond James upgraded shares of Netflix (NASDAQ: NFLX) from Market Perform to Outperform and announced a $450 price target.
The upgrade comes a day after the company slightly beat first quarter earnings and offered second quarter guidance.
Analyst Aaron Kessler's upgrade is based on:
- Strong subscriber growth and significant total addressable market. The analyst believes Netflix “can reach ~55 million long-term domestic subs and 60 million plus international subs.”
- Improving operating margins -- “Domestic streaming margins increased 460 bp y/y (driven by lower marketing and content cost leverage,” said the analyst.
- Price increases “will enable Netflix to continue to invest in higher quality content and thus attract more users.”
Shares are up 6.2 percent to $369.99 from Monday's closing price of $348.49.
Latest Ratings for NFLX
|Mar 2015||Argus Research||Initiates Coverage on||Hold|
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