In a research report sent to investors today, Oppenheimer analyst Jason Helfstein maintained an Outperform rating on Netflix (NASDAQ:NFLX) and raised his price target to $483 (from $431), after the company reported fourth-quarter global net subscriber additions 8% above Street estimates.
Helfstein noted, “We believe Originals drove most of the upside, and management plans to leverage its global rights to accelerate International expansion above expectations. Furthermore, NFLX admitted that the pricing increase had less of an impact on 2H results than originally suggested. With 320 hours of original programming planned for 2015, 3x 1Q14, we view “Originals” as the key driver of operating results in the next 6-12 months. Target assumes 10x US EBITDA and 5x Int’l revenue based on 2016 estimates. In our opinion, NFLX is the best global play in shift to multi-platform video content.”