Oppenheimer: Buy Netflix On Weakness, Stock Worth $130

• The share price of Netflix, Inc. NFLX has soared 132.04 percent through 2015, reaching a high of $130.93. on December 4.
• Oppenheimer’s Jason Helfstein has maintained an Outperform rating on the company, with a price target of $130.
• Despite the 17 percent decline in the share price over the past 30 days, Helfstein believes that there could be 21 percent upside potential to the stock.

Analyst Jason Helfstein said that there were three reasons to be bullish on the stock, “1) press reports suggest NFLX will announce launches in India and Russia; 2) a large amount of original content is slated for 2016; and 3) we expect more details on Japan launch during the 4Q call.”

Helfstein mentioned that although replaced credit cards drove weaker US net adds in 3Q, the robust holiday season for CE devices and additional original content would more than mitigate the impact of this weakness.

Netflix is expected to announce its launch in India at the CES on January 6. “While there are competing services that target 100M broadband subscribers in India, press reports suggest NFLX could partner with a 4G service provider for launch,” the report stated.

In addition, the company has announced plans for six new original content pieces, including two feature-length films, along with more than 30 original content releases through the rest of 2016.

The company’s updated country model for 2016 could drive global expansion, with an additional 268 million households by the end of 2016, as compared to an estimated 73 million for 2015.