RBC Capital top analyst Mark Mahaney remains bullish on Netflix, Inc. (NASDAQ:NFLX) following U.S., UK, and Brazil surveys, as well as Mahaney’s international profitability analysis, with key findings revealing the online streaming giant to be in a stellar position.
As such, Mahaney reiterates an Outperform rating on shares of NFLX with a price target of $130, which represents just under a 33% increase from where the stock is currently trading.
Mahaney asserts, “We believe that Netflix has achieved a level of sustainable scale, growth, and profitability that isn’t currently reflected in its stock price. This conclusion is based on our assessment of Netflix’s 47 million U.S. Subscriber and 36 million International Subscriber bases, which makes Netflix one of the largest global Entertainment subscription businesses.”
As time passes, Netflix’s numbers grow stronger in the U.S., with 68% of Amazing Prime Members indicated to be Netflix subscribers. Meanwhile, with the giant’s pre-2014 international markets “on track” to garner $500MM in Contribution Profit, it is the analyst’s strong belief that “investors underappreciate NFLX’s international profit potential.”
As usual, we like to include the analyst’s track record when reporting on new analyst notes to give a perspective on the effect it has on stock performance. According to TipRanks, top five-star analyst Mark Mahaney has achieved a high ranking of #5 out of 4,127 analysts. Mahaney upholds a 68% success rate and realizes 20.6% in his annual returns. When recommending NFLX, Mahaney earns 56.1% in average profits on the stock.
TipRanks analytics demonstrate NFLX as a Buy. Based on 32 analysts polled in the last 3 months, 17 rate a Buy on NFLX, 10 maintain a Hold, while 5 issue a Sell. The consensus price target stands at $109.27, marking a nearly 13% upside from where the shares last closed.
Recommended Article: Top Analyst Bullish on Netflix in Wake of Underwhelming Olympics Ratings