Netflix (NFLX) PT Raised to $125 by RBC Capital's Mahaney; Calls Quarter 'Sense8-tional'

RBC Capital analyst Mark Mahaney reiterated an Outperform rating and boosted his price target on Netflix (NASDAQ: NFLX) to $125.00 (from $100.00) after the company beat both U.S. and International Sub expectations, with new popular Original Content shows (like Sense8) driving demand.

The keys to the quarter, according to Mahaney: 1) Domestic Sub Results – Q2 U.S. Net Adds continue to accelerate, and the Q3 outlook implies that ’15 Sub Adds will exceed ’14. 2) Domestic ARPU Solid – ASPs up 5% Y/Y, and we haven’t yet seen the full impact of the $1 price increase; 3) International Subs – Net Adds came in at 2.37MM, handily beating the Street’s expectation of 1.94MM; 4) Q3 International Guide – Contribution Loss Guide materially better/lower than Street expectations. & 5) FCF – $229MM FCF loss seen in Q2 (vs. $163MM loss in Q1) was the largest seen so far, but this trend will likely continue given major new market and content launches on the horizon.

2016 Revenue increases to $8.81B from $8.35B, while GAAP EPS decreases to $0.09 from $0.11, due to assumed accelerated International launches

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.

You May Also Be Interested In

• Kepler Cheuvreux Upgrades Koninklijke KPN NV (KPN:NA) (KKPNY) to Buy
• Kepler Cheuvreux Downgrades Telecom Italia SpA (TIT:IM) (TI) to Hold
• Axis Capital Limited Downgrades Wipro Ltd. (WPRO:IN) (WIT) to Reduce (3)