Credit Suisse Maintains on Netflix

In a report published Thursday, Credit Suisse analyst Stephen Ju maintained Neutral on Netflix (NASDAQ: NFLX), raising price target to $349.00 from $344.00. According to the report, NFLX reported 4Q13 revenue of $1.18b versus CS $1.18b and consensus $1.17b. Both domestic streaming subscribers at 33.4mm and International streaming subscribers at 10.93mm exceeded the high end of guidance parameters while falling modestly short of our projection for International.“Netflix continued to demonstrate domestic subscriber growth momentum as the 1Q14 guidance parameters imply higher net adds versus last year,” the report noted. “Similar positive dynamics as well as decreasing losses in its International operations have prompted the company to announce expansion into additional European markets in 2014, which should not be a surprise. This should exert some near-to-medium term pressure on profitability but as these new territories follow the growth path demonstrated by the US and others, it should ultimately lead NFLX to higher operating profit and FCF dollars over the longer term. In the meantime, we maintain our Neutral rating on valuation but raise our price target modestly to $349 as we increase the growth trajectory of both domestic streaming and International subscribers, offset by decreases to DVD subscribers.”NFLX closed Wednesday at $392.95 with shares trading up at 17.89 percent.