RBC Reiterates Outperform On Netflix Following Surveys Results
In a research report issued after close, RBC analyst Mark Mahaney reiterated an Outperform rating on Netflix (NASDAQ:NFLX) with a price target of $550, in light of positive U.S. survey results and very tentative France & Germany survey results.
Mahaney noted, “We ran our 13th quarterly 1,000+ U.S. Internet User survey. The U.S. survey continues to support compelling value proposition.” Furthermore, “We ran our first 3,200 France & Germany Internet User surveys. The surveys suggest early stages for Netflix in Europe.”
The analyst added, “We continue to believe that Netflix has achieved a level of sustainable scale, growth, and profitability that isn’t factored into its stock price. And the company still has plenty of Content, Marketing, and Market Expansion levers to achieve Global Sub levels nicely in excess of 100MM long-term. Which implies close to $50 in l-t EPS power. And we still see hidden valuation upside with NFLX shares.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Mark Mahaney has a total average return of 23.8% and a 61.7% success rate. Mahaney has a 64.6% average return when recommending NFLX, and is ranked #15 out of 3395 analysts.