UPDATE: Netflix (NFLX) Price Target Raised to $280 at Goldman Sachs
(Updated - July 23, 2013 10:14 AM EDT)
Goldman Sachs today maintained a Neutral rating on Netflix (NASDAQ: NFLX) and raised its 12-month price target to $280.00 (from $235). Analyst Heath P. Terry sees margin expansion, but he thinks many positives are already reflected in the stock's price.
"As the company's subscriber base scales against content costs (particularly from investment in unique original content), international losses moderate, and ARPU grows, we see margin expansion and earnings growth potentially exceeding consensus estimates. With the stock's premium multiple reflecting a degree of that growth, we would look for a more attractive entry point," he said.
"Our 12-month target goes to $280 from $235, based on an 85%/15% blend of EV/EBITDA ($273, 24x 2014E, 20x prior) and M&A ($323, 3.3x EV/sales, 2.5x prior)," he added.
For an analyst ratings summary and ratings history on Netflix (NASDAQ: NFLX) click here. For more ratings news on Netflix click here.