Netflix Inc NFLX had a jolly good showing in a survey of United Kingdom users that found record high usage and strong satisfaction.
Combined with still-positive American results, the positive news is keeping RBC bullish on the stock.
The Analyst
Mark Mahaney reiterated an Outperform rating on Netflix with a $450 price target.
The Thesis
The British survey results are driving the optimism.
The survey showed for the first time that Netflix is the top website for watching TV or movies in the U.K., Mahaney said in a Friday note. (See his track record here.)
Penetration set a record, with 67% of Brits saying they watch Netflix, up from 56% a year ago.
No Netflexit Coming
British viewers may be leaving the European Union, but they won’t be leaving Netflix: seven in 10 respondents to the RBC survey said they’re unlikely to cancel. And 80% of subscribers said they’re either extremely or very satisfied.
American Results
Results were largely positive in the United States as well, with quarter-over-quarter and year-over-year increases in penetration. In the States, 64% of respondents watch Netflix, beating out Amazon.com Inc. AMZN and Walt Disney Co. DIS’s Hulu.
More than six in 10 Netflix customers are extremely or very satisfied, and only 12% of subscribers say they’re very or extremely likely to cancel, despite a recent price increase.
Big Shows
“Stranger Things” is the most popular show right now on Netflix, according to the survey, followed by “The Office” and “Orange is the New Black.”
Netflix’s second-half content slate is “arguably Netflix’s strongest to date,” Mahaney said, citing re-releases of “Stranger Things,” “Orange is the New Black” and “13 Reasons Why,” several popular international series and two much-awaited original films, “The Irishman” and “6 Underground.”
Global Interest
The appeal of Netflix is also spreading, the analyst, citing Google search trends that show Netflix at a record high in several countries, including India.
Price Action
Netflix shares were up 0.8% at $293.76 at the time of publication Monday.
Related Links:
Piper Jaffray: Netflix Subscriber Survey Shows Strength In Face Of Competition From Disney
Why Strong Subscriber Growth for Hulu, Netflix Bodes Well For The Sector
Photo courtesy of Netflix.
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