JPMorgan Sees 57% Upside In Netflix - Read Why - Netflix (NASDAQ:NFLX)

JPMorgan analyst Doug Anmuth says Netflix Inc NFLX shares "remain controversial" as the in-line Q4 subscribers and "light" Q1 outlook are driving lower growth expectations and increased questions around subscriber penetration impact of content and competition.
However, he believes solid secular growth remains in global streaming and that Netflix's penetration of global broadband households excluding China is less than 30%.
In addition, his analysis of Apptopia data almost halfway through Q1 suggests that the company is tracking ahead of plan.
Related Content: Netflix Falls On Q4 Earnings Results: Here's Why And What Investors Need To Know
If Netflix were to continue the quarter at its current pace, net additions could be 5 million-plus, compared to the 2.5 million guidance, Anmuth tells investors in a research note.
He reiterated an Overweight rating on the shares with a $605 price target (56.5% upside) but cautioned that the potential subscriber impact from the recent price increase "may lie ahead."
Price Action: NFLX shares traded higher by 1.01% at $390.57 on the last check Friday.