In a latest note sent to investors and clients, RBC Capital an equity research firm increased its stock price target on Netflix stock from $600 to $700 while reiterated a rating of Outperform. Mark Mahaney, an analyst at RBC Capital made the alteration after the survey result conducted by the research firm for streaming giant’s audiences across the United States, Germany and France, exclusive Original Content Tracking, and reviewed earnings per share analysis model for streaming services, that involves a possible launch in markets in China.
As per RBC’s United States survey outcomes, most of the people living in the region usually prefer Netflix against other service providers, 50% of the individual surveyed by the research firm use Netflix to watch TV shows and movies. YouTube comes second with 44%, Hulu’s service stood third with 24% of score, and lastly Amazon with almost 23% of score.
Moreover, almost 77% of existing Netflix’s user base in the country will not going to revoke their subscription when the streaming company will charge an additional $1 for its streaming services. Surveys in Germany and France shows that viewership is going up at an enhanced rate in both the countries. In Germany, Netflix Inc. has become the fourth biggest Online Movie TV Website. Nearly 88% of German and 86% of French respondents have showed extreme satisfaction with the services provided by Netflix.
Mr. Mahaney’s exclusive tracking proposes that the company’s original content is currently gaining strong thrust. Daredevil was apparently the most rated TV show produced by the company following by a 4.6 star rating by RBC Capital. Daredevil has had almost 400,000 viewers a week since it was released. In the meantime, “House of Cards” earned 4.5 stars thoroughly trailed by "Orange is the New Black" with 4.4 stars.
The analysts also showed great hopefulness regarding Netflix’s forecasts in the coming years, depending on the company lately announcing its tactics to enter and capture the Chinese markets. Therefore, RBC Capital forecasts that the streaming giant company’s user base in the coming years will increase to approximately 160 million from previous 120 million. Supposing an operating margin of 30% and $11 Average Revenue per User company’s earnings per share stands to make $60 a share in the long term,
Netflix Inc. stock was up 0.48% to $624.83 during pre-market trading session on Tuesday May 26 as of 07:42 AM EDT. The streaming giant has 52 week low and high stock price of $315.54 and $628.50, respectively.