Analyst at Baird, managed by William V. power, have re-stated its rating of Outperform with a target price of $505 on the Netflix Inc. stock followed by a consumer survey by Baird disclosed that the streaming giant is enjoying robust growth in the United States.
Mr. Power stated that the sell side companies’ survey demonstrates robust demand in the quarter covering from January to March of current fiscal year for the internet streaming giant network. This was the major reason why analysts reviewed their previous expectation of 2.1 million paid subscribers. The analysts also forecasted that shows like “House of Cards” season 3, “Bloodline” and “Unbreakable Kimmy Schmidt” as the main motorists for subscriber’s growth in the first quarter of 2015.
Particularizing on the survey, he said that they have established that company’s US penetration is around 43% in contrast with 35% in last quarter and 31% last year. Analysts believe that their approximation of 2.1 million paid subscriber’s addition for the current quarter may essentially be conservative.
While discussing the influence of “House of Cards” season 3 the analysts said the political series were searched mostly by any other season, as Google data showed, "Bloodline" and “Unbreakable Kimmy Schmidt" were also seemingly off to a great start. Baird also highlighted new launches by Netflix in the market and also by other global markets.
They also pointed out many long term and short term opportunities that can become the possible catalysts for the company. Mr. Power said that Netflix Inc. has numerous opportunities through which they can generate revenues such as original content that will be releasing later this year.
Besides this, Mr. Power said that international revenue will witness an improvement from latest markets like New Zealand and Australia as well as markets such as Germany and France. Furthermore, he believes that more fresh market launches may take place this year.
Analysts at Baird expected first quarter combined earnings per share and revenue to come at 63 cents and $1.57 billion versus 64 cents and $1.57 billion of estimation by Street’s analysts. The streaming media company 2K15 and 2K16 earnings per share projections are $1.41 and $5.10 respectively much lower than the consensus forecast of $3.23 and $5.10.
Almost 42 analysts covered Netflix stock Buy rating has been recommended by 22 analysts and Hold by 20 while remaining 6 assigned Sell rating to the stock. The average 12 month price objective by analysts is $442.
This article is written by Mark J Guillen for more information about Netflix Updates just click: