- Analysts say a big takeaway from Netflix's (NFLX +4.5%) Q4 report is that some concerns on international competition cutting into growth could subside. The strong subscriber growth forecast for Q1 (+1.5M domestic adds, +3.7M global adds) is also seen as supporting pricing. JPMorgan says higher average selling price potential is in the mix.
- The more cautious views on Netflix from Wall Street focus on the "staggering" free cash flow losses (~$2B in 2017) and high valuation (+300 PE).
- Deutsche Bank has a down the middle view. “We continue to view Netflix’s business outlook and growth opportunity favorably, however, at this valuation level, we don’t see a favorable risk/reward," reads the firm's note.
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Price target changes on Netflix: Evercore to $140 from $111, JPMorgan to $175 from $140, Oppenheimer to $165 from $134, FBR to $144 from $100, Guggenheim to $160, Cowen to $165, Pivotal Research to $170 from $155.
- Netflix traded as high as $143.46 in early trading before settling back.
- Sources: Bloomberg and Marketbeat.com.
- Previously: Netflix beats by $0.01, revenue in-line (Jan. 18)
- Previously: Subscriber growth dazzles at Netflix (Jan. 18)