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UPDATE: Raymond James Upgrades Netflix Following Q1 Earnings

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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

DateFirmActionFromTo
Sep 2014BarclaysUpgradesUnderperformEqual-weight
Sep 2014SunTrust Robinson HumphreyInitiates Coverage onNeutral
Sep 2014Canaccord GenuityInitiates Coverage onBuy

View More Analyst Ratings for NFLX
View the Latest Analyst Ratings

Posted-In: Aaron Kessler Raymond JamesAnalyst Color Upgrades Analyst Ratings

 

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