Why Citi's PT of $722 On Netflix Is Not A 'Ridiculous' Number Anymore?

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Analyst at Citi published a note on Thursday maintaining their Buy rating on stock of Netflix, Inc. NFLX, while increasing their price target from $584 to $722.

 

Mario Gabelli, GAMCO Investors chairman and CEO and CNBC’s FMHR trader Pete Najarian were recently seen weighing in on this.

 

We Like Quality

 

Gabelli disclosed that he owns only 100 shares in Netflix and ‘missed the bus’ by not buying the shares of the company when they were trading at lower price.

 

“The valuation relative to other alternatives is something that we constantly look at within the context of over-the-top in terms of consumer appetite for content,” Gabelli said. “We like quality content, we like quality distribution. This is a stock […] that I didn’t buy at $80 or $82 when Reed Hastings raised prices last [night], it is what it is.”

 

Extreme Growth In Front Of Them

 

“Citi’s note actually talked about it being unappreciated, right? And the opportunity is still there,” Najarian said. […] “We talk about content all the time. We talk about all the content providers, but this is a company that’s not just on the content side. They actually have an extreme growth in front of them; we have talked about Europe for a long time. That remains an area where they are seeing a lot of growth.”

 

“Latin America represents something that could be absolutely huge. The one issue that you would have to have right now […] was April 1st the stock is $420, now it’s trading $620. Do you feel like you are late to the party on this one? I actually don’t know that you are late to the party. I think this $720 number is not a ridiculous number based upon their churn and what they are able to do. The churn is not what it used to be,” Najarian concluded. 

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Posted In: CNBCMedia
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