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Oppenheimer: Netflix Worth $800 On 'Aggressive' International Expansion

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Oppenheimer: Netflix Worth $800 On 'Aggressive' International Expansion
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In a report published Friday, Oppenheimer analyst Jason Helfstein reiterated an Outperform rating on Netflix, Inc. (NASDAQ: NFLX), while raising the price target from $610 to $800, following the company's announcement that it intended to expand its operations to five new countries.

The analysts expect Netflix to end 2015 with 30 percent broadband penetration in its five oldest markets of the U.S., Canada, Brazil, UK and Ireland, with 239 million global subscribers or 32 percent penetration by 2020.

Related Link: Netflix Now Worth $722/Share, Citi Says

As part of its "aggressive international expansion" plans, Netflix has announced plans to enter Spain, Cuba, Japan, Italy and Portugal in 2015. Data from Google Trends suggests that the momentum in the new markets is strong. The company has launched services in Australia and New Zealand in March. The search activity in these two countries is significantly higher than the pre-launch levels.

The 2016 non-GAAP EPS estimate has been raised 13 percent, driven by expectations of lower international losses.

Shares of Netflix have risen 94 percent year-to-date, closing Thursday at $663.20.

Latest Ratings for NFLX

DateFirmActionFromTo
May 2017PiperJaffrayMaintainsOverweightOverweight
Apr 2017Cantor FitzgeraldMaintainsOverweightOverweight
Apr 2017RosenblattInitiates Coverage OnNeutral

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