GBH Insights Pounds The Table On Netflix, Inc. (NFLX) Stock
GBH Insights analyst Daniel Ives was out pounding the table on shares of Netflix, Inc. (NASDAQ:NFLX) Thursday, reiterating a Highly Attractive rating and raising his price target to $310 (from $255), which reflects stronger than expected net sub adds and international momentum heading into the rest of 2018. (To watch Ives’ track record, click here)
Ives opined, “We believe Netflix has a number of growth levers which should fuel the company’s next phase of strategic penetration among both US and especially international consumers. While the landscape for original content has become increasingly competitive with new entrants entering the market by the day (Disney/Fox remains a clear competitive worry) we believe Netflix remains in a unique position of strength to grow its content and distribution tentacles over the next 12 to 18 months and thus further build out its massive content and streaming footprint. To this point, yesterday’s flagship Ryan Murphy deal was the first “shot across the bow” in our opinion as Netflix is looking to aggressively purchase content and talent with the Disney/Fox ecosystem now in a major target range. Our bullish thesis on Netflix is based on our belief that the company’s competitive moat, franchise appeal, ability to increase international streaming customers through 2020, and original content build out will translate into robust profitability and growth as the next phase of this story plays out over the coming year.”
The word on the Street rings largely bullish on this TV streaming giant, backing Ives’ confident move, with TipRanks analytics demonstrating NFLX as a Buy. Out of 33 analysts polled in the last 3 months, 23 are bullish on Netflix stock, 9 remain sidelined, and only one is bearish on the stock.