- Bank of America Merrill Lynch (NYSE:BAC) turns its focus on Netflix (NFLX -2%) to Q2, with new and original content expected to drive subscriber growth. The firm notes that the quarter-to-date net subscriber growth already looks strong. BAML moves its price target on NFLX to $184 (Street high).
- Raymond James and Nomura Instinet both think that Netflix's international growth will continue to drive improved profitability. Both firms have a PT of $165 on the streamer.
- Wedbush analyst Michael Pachter warns on the "greater fool" theory on Netflix that it can grow into its valuation through prices hikes. "The truth is their content costs will rise as they choose to raise prices," he says.
- Meanwhile, Credit Suisse (SIX:CSGN) isn't looking at Netflix earnings, but is dishing out thoughts on a potential takeover of the company by Apple (NASDAQ:AAPL). A $60B valuation is called "ambitious" by the firm. "However, given the desirability of providing video streaming content to Apple users and devices, it is a possibility with improved terms with content owners and potentially bundling with other Apple services," reads the CS note.
- Sources: Bloomberg and Benzinga
- Previously: Netflix beats by $0.03, revenue in-line (April 17)
- Previously: Netflix subscriber growth falls short of estimates (April 17)
Original article