Imperial Capital raised its stock price target on Netflix Inc. on Thursday to $485 from $447, after the streaming giant's blowout first-quarter subscriber numbers posted late Tuesday. Analyst David Miller reiterated his outpeform rating on the stock. Miller said he could not be more pleased with the performance of the stock in the midst of the coronavirus pandemic, climbing about 14% in the first quarter while the S&P 500 has fallen 20.6%, in the midst of the most intense market volatility seen since the 2008/9 crisis. "This is one of a very few names in the S&P 500 which, for the most part, is impervious to the derivative effects COVID-19, as the price points for each service iteration are mostly recession-resistant, and consumption of content is not communal," he wrote. "As was proven on the 4Q19 call, and on this call as well, the company has largely debunked what we viewed as "Street group-think" going in to the launch of Disney+ on 11/12/19, which was that Disney+ was going to "take share" from NFLX and force NFLX to lower its prices, thereby forcing analysts to lower out-year estimates." The analyst raised his second-quarter estimates and fiscal 2020 estimates, and he said he expects higher average selling prices. Netflix shares are up 30% year-to-date, while the S&P 500 has fallen 13% and the Dow Jones Industrial Average has fallen 18%. Read More...
Imperial Capital raised its stock price target on Netflix Inc. on Thursday to $485 from $447, after the streaming giant’s blowout first-quarter subscriber numbers posted late Tuesday. Analyst David Miller reiterated his outpeform rating on the stock. Miller said he could not be more pleased with the performance of the stock in the midst of the coronavirus pandemic, climbing about 14% in the first quarter while the S&P 500 has fallen 20.6%, in the midst of the most intense market volatility seen since the 2008/9 crisis. “This is one of a very few names in the S&P 500 which, for the most part, is impervious to the derivative effects COVID-19, as the price points for each service iteration are mostly recession-resistant, and consumption of content is not communal,” he wrote. “As was proven on the 4Q19 call, and on this call as well, the company has largely debunked what we viewed as “Street group-think” going in to the launch of Disney+ on 11/12/19, which was that Disney+ was going to “take share” from NFLX and force NFLX to lower its prices, thereby forcing analysts to lower out-year estimates.” The analyst raised his second-quarter estimates and fiscal 2020 estimates, and he said he expects higher average selling prices. Netflix shares are up 30% year-to-date, while the S&P 500 has fallen 13% and the Dow Jones Industrial Average has fallen 18%.
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