Netflix, Inc. (NASDAQ:NFLX) could see an important positive catalyst from possible China expansion news. Although shares had consolidated for some time, recent jumps in Netflix stock prices has been recently observed. Recently, in a research note, Citigroup analyst Mark May believed Netflix (NFLX) has company specific factors that should enable the company to outperform the internet group over the near term, although being worried about peak valuations of the internet group sectors companies.
Netflix, Inc. (NASDAQ:NFLX) reported last quarter earnings on April 15. The E-Commerce & Services company announced earnings per share of $0.77 against a consensus Street estimate of $0.67, beating the average estimate by $0.1. This corresponds to an increase of $0.02 compared to the same quarter of the previous fiscal year.
On May 5, Bank of America Merrill Lynch analyst Nat Schindler was bullish on the company’s long-term earnings potential. Netflix’s strong original shows will enable it to increase substantially its U.S. subscribers base and generate international subscriber growth for a long time, according to Schindler. The analyst believes that Netflix could have 50 million international subscribers by 2017, more than double from the current 20 million.
The highest potential will come from its international subscriber base which could reach 120 million or more, according to Bank of America Merrill Lynch. At this occasion, Bank of America Merrill Lynch upgraded its Neutral rating to Buy .Bank of America set their price target at $722. On the date of report, the stock closed at $565.55.
In another research note, Stifel Nicolaus forecasted that Netflix would have 150 million subscribers by the end of 2020 and reiterated their Buy stance on April 27. The research firm increased its price target on NFLX stock from $650 to $725. On the date of report, the stock closed at $566.08.
Finally, Baird reiterated their Outperform stance on April 16. Baird increased their price target on Netflix Inc from $505 to $610. On the date of report, the stock closed at $562.05.
There are currently forty-three analysts that cover NFLX stock. Of those forty-three, twenty-seven have a Buy rating, thirteen have a Hold rating and three have a Sell rating. On a consensus basis this yields to an Overweight rating. The consensus target price stands at $568.97.
Netflix, Inc. (NASDAQ:NFLX) is an Internet subscription service for watching tv shows and movies. Subscribers can instantly watch unlimited TV shows and movies streamed over the Internet to their TVs, computers and mobile devices and in the United States, subscribers can receive standard definition DVDs and Blu-ray Discs delivered to their homes.