When Netflix Analysts Attack: What 7 Experts Are Saying Before Earnings

Netflix, Inc. NFLX reports quarterly earnings this evening, with expectations that the stock may move 10 percent, according to options pricing. Heading into earnings, both Citi and UBS upgraded the stock to a Buy, with $525 and $565 price targets, respectively. Here's a recap of what analysts have said recently:

• Canaccord Genuity (Buy; $530 price target from $450 prior): Analysts at Canaccord Genuity expect international growth to dominate investor reaction, while "financial performance expectations over the near term have become less impactful to the stock." In the aftermath of today's earnings, the analysts noted that the stock will be volatile; however, internationally, the company is positioned to "leverage its first-mover advantage" to "become the preeminent global player in the developing sector."
• Piper Jaffray (Neutral; $487 price target): Though Piper Jaffray rated Netflix at Neutral, the analysts said they "have a relatively more positive bias," which they attribute to EPS growth that will average 50 percent from 2016 through 2020. On international growth, the analyst pegged Netflix's strategy as "sound," but said that it "may be expensive near-term."
• SunTrust (Neutral; $480 price target from $410 prior): SunTrust maintained its Neutral rating based on "highly elevated sentiment/expectations into the 1Q report," as well as the "recent surge in the stock." SunTrust expects domestic subscriptions below guidance by 2 percent, while international subscriptions may surprise to the upside, led by Australia, New Zealand and Latin American subscriptions.
• Cantor Fitzgerald (Buy; $500 price target): Cantor Fitzgerald said it expects Netflix to report "strong" Q1 results that show "healthy growth" in US and international markets. The international growth is expected to outpace U.S. growth, according to the analysts. Cantor also noted that it expects headlines regarding "cord cutting" and "unbundling" to provide a lift to Netflix moving forward.
• UBS (Upgraded to Buy; $565 price target from $370 prior): Netflix is an attractive risk/reward setup for traders, with UBS seeing the best and worst case sending the stock to $942 or $243 – meaning that there is more room to the upside than the downside. Additionally, UBS said that the stock has fluctuated wildly between the low $300s and high $400s, all the while revenue grew 26 percent. The analysts said they have "increased confidence" in accelerating international subscriptions, leading to the upgrade and the bullish note.
• Citi (Upgraded to Buy; $525 price target from $409 prior): Three main points underscored Citi's upgrade last week: (1) the stock's recent pullback, which it attributes to "competition concerns;" (2) an improved content line-up in 2015; and (3) data that shows how disruptive Netflix is to video viewing habits. Citi expects 19.5 percent upside to its 12-month price target.
• Morgan Stanley (Overweight; $535 price target): Morgan Stanley said it is Overweight Netflix based on its "original programming traction" and ability to scale globally. Notably, Morgan Stanley pointed to the fact that Netflix should see 30 percent growth in streaming time per subscription in Q1 as a dominating factor in increasing its "conviction in pricing power."

• Canaccord Genuity (Buy; $530 price target from $450 prior): Analysts at Canaccord Genuity expect international growth to dominate investor reaction, while "financial performance expectations over the near term have become less impactful to the stock." In the aftermath of today's earnings, the analysts noted that the stock will be volatile; however, internationally, the company is positioned to "leverage its first-mover advantage" to "become the preeminent global player in the developing sector."
• Piper Jaffray (Neutral; $487 price target): Though Piper Jaffray rated Netflix at Neutral, the analysts said they "have a relatively more positive bias," which they attribute to EPS growth that will average 50 percent from 2016 through 2020. On international growth, the analyst pegged Netflix's strategy as "sound," but said that it "may be expensive near-term."
• SunTrust (Neutral; $480 price target from $410 prior): SunTrust maintained its Neutral rating based on "highly elevated sentiment/expectations into the 1Q report," as well as the "recent surge in the stock." SunTrust expects domestic subscriptions below guidance by 2 percent, while international subscriptions may surprise to the upside, led by Australia, New Zealand and Latin American subscriptions.
• Cantor Fitzgerald (Buy; $500 price target): Cantor Fitzgerald said it expects Netflix to report "strong" Q1 results that show "healthy growth" in US and international markets. The international growth is expected to outpace U.S. growth, according to the analysts. Cantor also noted that it expects headlines regarding "cord cutting" and "unbundling" to provide a lift to Netflix moving forward.
• UBS (Upgraded to Buy; $565 price target from $370 prior): Netflix is an attractive risk/reward setup for traders, with UBS seeing the best and worst case sending the stock to $942 or $243 – meaning that there is more room to the upside than the downside. Additionally, UBS said that the stock has fluctuated wildly between the low $300s and high $400s, all the while revenue grew 26 percent. The analysts said they have "increased confidence" in accelerating international subscriptions, leading to the upgrade and the bullish note.
• Citi (Upgraded to Buy; $525 price target from $409 prior): Three main points underscored Citi's upgrade last week: (1) the stock's recent pullback, which it attributes to "competition concerns;" (2) an improved content line-up in 2015; and (3) data that shows how disruptive Netflix is to video viewing habits. Citi expects 19.5 percent upside to its 12-month price target.
• Morgan Stanley (Overweight; $535 price target): Morgan Stanley said it is Overweight Netflix based on its "original programming traction" and ability to scale globally. Notably, Morgan Stanley pointed to the fact that Netflix should see 30 percent growth in streaming time per subscription in Q1 as a dominating factor in increasing its "conviction in pricing power."