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Benzinga
Benzinga
Business
Anusuya Lahiri

JPMorgan Sees 57% Upside In Netflix - Read Why

  • JPMorgan analyst Doug Anmuth says Netflix Inc (NASDAQ:NFLX) shares "remain controversial" as the in-line Q4 subscribers and "light" Q1 outlook are driving lower growth expectations and increased questions around subscriber penetration impact of content and competition. 
  • However, he believes solid secular growth remains in global streaming and that Netflix's penetration of global broadband households excluding China is less than 30%. 
  • In addition, his analysis of Apptopia data almost halfway through Q1 suggests that the company is tracking ahead of plan. 
  • Related Content: Netflix Falls On Q4 Earnings Results: Here's Why And What Investors Need To Know
  • If Netflix were to continue the quarter at its current pace, net additions could be 5 million-plus, compared to the 2.5 million guidance, Anmuth tells investors in a research note. 
  • He reiterated an Overweight rating on the shares with a $605 price target (56.5% upside) but cautioned that the potential subscriber impact from the recent price increase "may lie ahead."
  • Price Action: NFLX shares traded higher by 1.01% at $390.57 on the last check Friday.
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