Guggenheim analyst Michael Morris was out pounding the table on Netflix, Inc. (NASDAQ:NFLX) Friday, reiterating a Buy rating and price target of $160, which implies an upside of 61% from current levels.
Morris wrote, “We believe incremental investment in video products by Hulu, Amazon, and others as supporting our belief that there is significant opportunity in the domestic over-the-top (OTT) video market. While they could compete for time spent, ultimately they strengthen the aggregate Internet-video option relative to the highly priced traditional pay-TV bundle, and we believe each is positioned to emerge as a winner.”
Furthermore, “Amazon’s offline video offering is incremental, but we believe that this is not a functionality that Netflix needs to pursue to strengthen its business. The inefficiencies of incremental rights costs, premeditated download by the consumer, and device storage constraints are only worth absorbing in a diminishing number of situations where customers do not have sufficient broadband capacity to stream. We expect more cost-effective solutions to emerge.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Michael Morris has a total average return of 8.2% and a 53.6% success rate. Morris has an 1.1% average return when recommending NFLX, and is ranked #1034 out of 3754 analysts.
Out of the 40 analysts polled by TipRanks, 27 rate Netflix stock a Buy, 10 rate the stock a Hold and 3 recommend to Sell. With a return potential of 8%, the stock’s consensus target price stands at $107.44.