UPDATE: Piper Jaffray Reiterates Neutral Rating, Raises PT on Netflix Following Teen Survey

In a report published Wednesday, Piper Jaffray analyst Michael J. Olson reiterated a Neutral rating on Netflix

, and raised the price target from $143.00 to $170.00. In the report, Olson noted, “Piper Jaffray recently completed its 25th semi-annual teen survey, a national study of >5,200 students. We asked high school students how they currently rent movies and how they expect to rent movies in the future: (1) 6% indicated they currently use DVD-by-mail, down from 9% in Spring-12. (2) 46% of teens said they download or stream movies. (3) Among various movie services that teens expect to use most over the next 5 years, Netflix topped the list with 59% share, up from 48% in Spring-12. Due to the market share gain for Netflix in relatively younger demographics, as well as the expected decline in other rental outlets, we are increasingly confident the company can continue to grow its domestic streaming service over the longer-term. Thus, we are increasing our multiple to 35x CY15E EPS (vs. previous 30x multiple), discounted 2 years at 8.3%, which increases our price target from $143 to $170.” Netflix closed on Tuesday at $163.06.