After MKM Partners and Bernstein gave Netflix (NASDAQ: NFLX) a Buy rating last month, the company received another Buy, this time from Stifel Nicolaus. Analyst Scott Devitt maintained a Buy rating on Netflix yesterday and set a price target of $380. The company’s shares closed yesterday at $354.64.
Devitt observed:
“We are bullish on the company’s ability to execute the pricing increase, though note in the near-term, domestic subscribers churn may tick up as the company introduces the new pricing levels to existing members. We see the potential for cautious 1Q guidance on domestic paid net subscriber additions due to this factor. Netflix’s new pricing compares to HBO NOW at $14.99 per month and Hulu’s ad- free product at $11.99. We believe it is possible Netflix will continue its recent pace of domestic price increases (every 16-18 months), as its Standard plan is still $2 below HBO’s product with a significantly larger content offering.”
According to TipRanks.com, Devitt is a top 100 analyst with an average return of 19.5% and a 65.7% success rate. Devitt covers the Technology sector, focusing on stocks such as Paypal Holdings, Eventbrite Inc, and Alphabet Inc.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Netflix with a $387.79 average price target, which is a 9.3% upside from current levels. In a report issued on January 2, SunTrust Robinson also maintained a Buy rating on the stock with a $355 price target.
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Based on Netflix’s latest earnings release for the quarter ending September 30, the company reported a quarterly net profit of $403 million. In comparison, last year the company had a net profit of $186 million.
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