Stifel Likes Netflix After Recent Plunge

In a Morning Research Summary, Stifel reiterated their Buy Rating on shares of Netflix

and maintained the $535 Price Target. "Netflix shares have pulled back by more than 10% over the past two weeks, which we believe is largely due to the perception that growing streaming video on-demand (SVOD) competition could negatively impact Netflix's domestic business, which is currently funding much of its content library investments / international expansion. We believe competitive concerns are overblown; we think Netflix's positioning in the U.S. is as strong as ever and continues to improve with each new content deal it signs. Recent speculation over a Spain launch in late summer / early fall could also prove to be a tailwind to Netflix's international business in 2015 that may not be fully reflected in consensus numbers. We reiterate our Buy rating and $535 target price." Stifel still expects 100 million global subscribers by 2017, given Netflix's pace of international expansion and content announcements. Shares of NFLX closed at 421.97, implying 26.77% upside to the $535 price target.