Top Analyst Calls for Q3 Upside on Netflix, Inc. (NFLX) for Both International and Domestic Subscribers

PIper Jaffray projects 100 million plus international subscribers under Netflix's sway within the next 3 years.


Top analyst Michael Olson at Piper Jaffray is out with good news for Netflix, Inc. (NASDAQ:NFLX) shareholders today. After assessing the video streaming giant’s search terms on Google to explore a benchmark for subscriber levels, Olson finds that trends point positively when it comes to upside potential.

When it comes to international and domestic subscribers come third quarter of this year, one of Wall Street’s best performing analysts sees room for gains on both accounts, forecasting 10.9% year-over-year domestic subscription growth against consensus of 10.7% and 42% year-over-year international subscription growth.

In reaction, the analyst reiterates an Overweight rating on NFLX stock with a $215 price target, which implies a 17% increase from current levels.

Notably, Olson’s search index actually points even higher, suggesting 16% growth domestically and up to 78% growth internationally for the giant. However, “With only two months (July/ Aug) of data included for Q3, we believe the index is likely overstating sub growth; that said, it is clearly positive from a directional perspective,” adds the analyst. Though there has been “historically […] some degree of error vs. actuals,” the analyst all the same believes his search index research exhibits a compelling “high likelihood of Q3 subscriber upside.”

Looking ahead, “We believe Netflix is well positioned to have >100M int’l subs by 2020, along with ongoing op margin expansion as the company spreads content and marketing spend over a growing installed base,” surmises Olson, betting that the video streaming giant will surely not disappoint his confident expectations.

Michael Olson has a very good TipRanks score with a 67% success rate and a high ranking of #56 out of 4,651 analysts. Olson garners 18.5% in his yearly returns. When recommending NFLX, Olson gains 17.3% in average profits on the stock.

The rest of the Street largely sides with Olson’s vote, as TipRanks analytics showcase NFLX as a Buy. Based on 32 analysts polled by TipRanks in the last 3 months, 22 rate a Buy on Netflix stock, 9 maintain a Hold, while 1 issues a Sell on the stock. The 12-month average price target stands at $195.87, marking a 7% upside from where the stock is currently trading.