Netflix: Jefferies raises target price.
(CercleFinance.com) - Jefferies has raised its target price on the Netflix stock from 165 dollars to 180 dollars, while maintaining its "hold" rating, after the video streaming company announced a price increase, which should finalised by the end of October.
Assuming no churn, the broker estimates that a 1 or 2 dollars increase could lead to additional revenue of between 650 million dollars and 700 million dollars in 2018.
In terms of profitability, Jefferies expects the company will invest the majority of the incremental cash flow in programming, maintaining a focus on modest margin expansion.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
Assuming no churn, the broker estimates that a 1 or 2 dollars increase could lead to additional revenue of between 650 million dollars and 700 million dollars in 2018.
In terms of profitability, Jefferies expects the company will invest the majority of the incremental cash flow in programming, maintaining a focus on modest margin expansion.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.