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FBR Just Put Netflix's PT At $900...Or $500 Higher Than Before

FBR Just Put Netflix's PT At $900...Or $500 Higher Than Before
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In a report published Thursday, analysts at FBR & Co upgraded Netflix, Inc. (NASDAQ: NFLX) to Outperform, while raising the price target from $400 to $900. A recent survey shows that domestic consumers prefer Netflix to television.

A proprietary survey, conducted by FBR, in collaboration with ClearVoice Research, LLC, in early April, revealed that almost 40 percent of U.S. TV households are Netflix subscribers, most of whom prefer Netflix to television. The survey results are in agreement with the 1Q earnings results reported by the company after market close on Wednesday.

Related Link: Netflix Vs. HBO Now Vs. Sling TV: Are They Competitive Or Complementary?

"In this outpouring of affection, we see Netflix as very likely to move towards 180 million global subscribers by 2020 (over 60 million in the U.S.) and, over time, enjoy mid-single-digit-plus ARPU growth," the analysts said.

In 1Q15, Netflix reported the addition of a total of 4.88 million new streaming subscriptions, of which 2.2 million were U.S. based. This was 21 percent above the guidance, pointing towards net additions of 5.6 million U.S. subscribers in 2015 and more than 10 million worldwide. The company plans to undertaken a major market expansion during 2H, which should drive these net adds.

Shares of Netflix were up more than 11 percent at $530.41 in Thursday's pre-market session.

Latest Ratings for NFLX

Jan 2017Loop CapitalMaintainsBuyBuy
Jan 2017MacquarieUpgradesUnderperformNeutral
Jan 2017MizuhoUpgradesNeutralBuy

View More Analyst Ratings for NFLX
View the Latest Analyst Ratings

Posted-In: FBR & Co.Analyst Color Upgrades Price Target Analyst Ratings Best of Benzinga


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