Jefferies analyst Alex Giaimo initiated coverage of Netflix Inc. shares with a buy rating Thursday, writing that the company has a "vastly underappreciated" total addressable market. He predicts that Netflix will continue to show double-digit subscriber growth through 2023 that will lift the company to about 285 million subscribers by then. "Our model assumes just 28% international penetration by 2023, vs our estimate of 18% today," he wrote, while also assuming that U.S. penetration stays constant at about 65%. He calculates that Netflix's total addressable market can grow to more than 850 million when taking into account broadband households and mobile-only subscribers. Giaimo set a $520 price target on the stock, which is up 0.9% in morning trading Thursday. The shares have added 16% over the past three months while the S&P 500 has declined 17%. Read More...
Jefferies analyst Alex Giaimo initiated coverage of Netflix Inc. shares with a buy rating Thursday, writing that the company has a “vastly underappreciated” total addressable market. He predicts that Netflix will continue to show double-digit subscriber growth through 2023 that will lift the company to about 285 million subscribers by then. “Our model assumes just 28% international penetration by 2023, vs our estimate of 18% today,” he wrote, while also assuming that U.S. penetration stays constant at about 65%. He calculates that Netflix’s total addressable market can grow to more than 850 million when taking into account broadband households and mobile-only subscribers. Giaimo set a $520 price target on the stock, which is up 0.9% in morning trading Thursday. The shares have added 16% over the past three months while the S&P 500 has declined 17%.
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