Tags: Netflix | Stock | Share | Price

Analyst Rob Sanderson: Netflix Stock Poised to Surge to $195

(Prykhodov/Dreamstime)

By    |   Friday, 26 May 2017 10:03 AM

Rob Sanderson, a research analyst who covers the stock for MKM Partners, predicts that shares of Netflix will continue to soar and the stock price could possibly come close to $200.

Sanderson raised his 12-month price target on the then-$158 stock to $195. Netflix stock was trading at early Friday at $162.

Sanderson also is forecasting that Netflix's earnings will explode from about $0.50 in 2016 to more than $12 in five years' time. And to further forecast that even after the stock does so, investors will still be sufficiently optimistic about future profits to slap a high earnings multiple on the company.

Sanderson told CNBC that the company has "more than ample opportunity to continue to scale up [its] content investment on a global basis," and that "the subscriber opportunity is sufficiently large."

Meanwhile, Netflix's recent earnings exceeded expectations, while slower-than-expected subscriber growth was offset by a better-than-expected forecast for subscriber growth in the current quarter.

The report was not enough to win over investors worried about the stock's pricey valuation, recently at 110 times expected earnings, Reuters reported.

Twenty-four analysts recommend buying Netflix's stock, while two recommend selling and 15 have neutral ratings.

"The company is likely to continue to experience quarter-to-quarter volatility, as both the pace of subscriber additions and the path to respectable profitability remains difficult to determine," wrote Dougherty analyst Steven Frankel in a research note, maintaining his neutral rating.

Analysts from Credit Suisse, Canaccord Genuity, Stifel and Wedbush raised their price targets for Netflix.

The stock on Tuesday was headed for its worst one-day dip since November 10, when investors abandoned many technology stocks and turned to sectors expected to benefit more from President-elect Donald Trump's campaign promises.

(Newsmax wires services contributed to this report).

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Rob Sanderson, a research analyst who covers the stock for MKM Partners, predicts that shares of Netflix will continue to soar and the stock price could possibly come close to $200.
Netflix, Stock, Share, Price
291
2017-03-26
Friday, 26 May 2017 10:03 AM
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