Netflix (NFLX) Price Target Raised to $122 at Pacific Crest

Pacific Crest maintenance an Overweight rating on Netflix (NASDAQ: NFLX) and raised its price target to $122.00 (from $95.00). The change follows Q2 results and guidance that topped expectations. Andy Hargreaves noted that a global launch in the first half of 2016 appears likely.

"We recommend owning NFLX. Q2 results beat estimates and support the view that Netflix is accelerating away from competition. While we believe recent appreciation has hurt the risk/reward around the shares, the company's dominant position and pending global launch warrant it being a core holding," said Hargreaves.

"Based on management's commentary around content spending, margin progression and likely plan, we now expect Netflix to expand globally, excluding China, in the first half of next year with one large launch. China remains an exception that will depend on Netflix's ability to gain a license or partner," continued the analyst.

Hargreaves added, "Netflix's sustained momentum in the United States prompts an increase to our 2016 year-end domestic subscriber estimate to 50.6 million from 48.6 million. We are also increasing our 2016 year-end international subscriber estimate to 44.8 million from 42.3 million. However, this largely reflects our expectation for a full global launch in 2Q16 rather than a staggered launch in our previous estimates."

For an analyst ratings summary and ratings history on Netflix click here. For more ratings news on Netflix click here.

Shares of Netflix closed at $98.13 yesterday.

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