Factors for NFLX Gains
Analysts Upgrades on NFLX.....
analyst David Heger expects that investors could come to appreciate the wider scope of the
“We have anticipated that as
Netflix’s business matures, investors will increasingly value the stock on
financial results rather than subscriber growth,” he wrote. “We still expect that Netflix can grow its long term earnings at a
double-digit rate as it further expands into international markets.”
international expansion offers ample opportunities for subscriber growth as
well, Heger added. And he likes the company’s overall positioning because he
believes Netflix’s investments in content have helped differentiate the
his rating on Netflix’s stock to buy from hold.
Citi analyst Jason Bazinet upgraded Netflix stock to buy from
neutral (hold), while simultaneously adjusting the firm's price target down
from $595 to $450.
The analyst cited the decline in the stock, noting it had come under
substantial pressure in the wake of its fourth-quarter earnings report.
However, he noted that an analysis of the enterprise value per subscriber
indicate that, at the current price, investors are assuming that Netflix's
growth will flatline, with no material subscriber growth or improvement is its
user economics after 2023.
Bazinet wrote in a note to clients: "While
Netflix ... may see more modest sub growth, we see other top-line vectors. For
Netflix, we believe the firm has ample pricing power."
rise Monday also comes after co-CEO Reed Hastings bought $20 million worth of
the shares, disclosed after the market closed Friday. It was Hastings’ first
open-market purchase of Netflix shares since the company’s 2002 IPO, in an
evident show of confidence in the stock.
added $20 million to his holdings, bringing his total share count to nearly
5.16 million shares.