J.P. Morgan Reiterates Overweight Rating, Raises PT on Netflix After Meetings with Executives

In a report published Wednesday, J.P. Morgan reiterated its Overweight rating on Netflix

, and raised its price target from $180.00 to $205.00. J.P. Morgan noted, “We recently hosted meetings with Netflix Founder and CEO Reed Hastings and Chief Content Officer Ted Sarandos. Overall, we came away confident that Netflix is back on track toward significantly disrupting the linear TV market through strong subscriber growth, content differentiation, and a better consumer proposition. Early feedback on House of Cards is encouraging and we believe originals could help drive subscriber upside in 2013. We reiterate our Overweight rating and are raising our price target to $205 based on our sum of the parts analysis which employs a 16.5x multiple on 2014 US Streaming EBITDA of $635M, 3x 2014 US DVD EBITDA of $282M, and 2x 2014 International revenue of $1.1B.” Netflix closed on Tuesday at $177.95.