Oppenheimer analyst Jason Helfstein came out with some insights on Netflix, Inc. (NASDAQ:NFLX) following the announcement of five new country launches since the analyst’s last update. Helfstein reiterated an Outperform rating on the stock and boosted the price target from $610.00 to $775.00, which represents a potential upside of 16.9% from where the stock is currently trading.
Helfstein noted, “We estimate NFLX’s five oldest markets–U.S., Canada, Brazil, U.K and Ireland–will end 2015 at an average broadband penetration rate of 30%. Our revised model now assumes 2020E global subscribers at 239M, or 32% penetration of broadband homes, consistent with 2015 rates in older markets. In addition, Google Trends data suggests increased interest in recently launched markets: Australia and New Zealand. Lowering ’16E non-GAAP EPS by 62% on higher Int’l losses.”
Moreover, “Assuming 32% broadband penetration in 2020E. According to ITU, global fixed broadband subs will reach 989M in 2020. We estimate global broadband subs (ex. China) at 752M in 2020 (76% broadband), a six-year CAGR of 5%. We estimate 32% broadband penetration for NFLX in 2020, consistent with its most mature markets today.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jason Helfstein has a total average return of 10.1% and a 54.8% success rate. Helfstein has a 42.4% average return when recommending NFLX, and is ranked #361 out of 3635 analysts.
Out of the 42 analysts polled by TipRanks, 30 rate Netflix stock a Buy, 9 rate the stock a Hold and 3 recommend Sell. With a downside potential of 12.7%, the stock’s consensus target price stands at $578.75.