BTIG Upgrades Netflix, Inc. And Raises Price Target to $600

 

BTIG upgraded Netflix, Inc. NFLX on Monday from Neutral to Buy with a $600 price target.

 

Analysts Richard Greenfield and Brandon Ross acknowledged their September 2013 downgrade “was clearly a mistake” and they now expect 100 million worldwide subscribers by 2017.

 

The new price target was “based on a 24x multiple of 2016 EBITDA discounted back one-year at 15 percent, adjusting International contribution margin to a “positive” 25 percent versus what we expect to be reported losses.”

 

Greenfield’s EPS estimates were well below consensus at $4.05 for 2015 versus $6.45.  

 

The report noted that “Netflix is focusing on expanding its overseas footprint and investing heavily in higher-quality content to accelerate its subscriber growth trajectory. While we believe management's global break-even comments are overly conservative, we do take a far more aggressive view of content/marketing spend than is embedded in consensus expectations.”

 

On Friday, Cantor Fitzgerald also commented on potentially more growth ahead for Netflix.

 

Netflix, Inc. closed at $438.58 Monday, down 2.99 percent.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: UpgradesPrice TargetAnalyst RatingsBrandon RossBTIG ResearchCantor FitzgeraldRichard Greenfield
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!