UPDATE: Pacific Crest Securities Reiterates On Netflix On Multiple Positive Factors

In a report published Tuesday, Pacific Crest Securities analyst Andy Hargreaves reiterated an Outperform rating on

, and raised the price target from $520.00 to $530.00. In the report, Pacific Crest Securities noted, “Netflix reported Q2 global streaming net adds of 1.7 million, exceeding our estimate of 1.4 million, with international driving the majority of upside. Higher content acquisition costs were offset by lower-than-expected marketing spending, driving global contribution margin expansion of 460 basis points y/y, above our estimate of 430 basis points of expansion. Q2 incremental contribution margin in the international segment of 48.9% was consistent with the incremental margin in Q1 and continued to show excellent leverage, in our view.” Netflix closed on Monday at $451.95.