International underappreciated - PT to $385
We believe that international will be the key driver of Netflix's business over the next few years and believe it is underappreciated by investors. With international adds accelerating last year, it is clear that Netflix is on the steepening rather than the flattening part of the S-curve. With estimated international penetration of just 10%, coupled with excellent momentum in the business, we are increasing our international 2021 subscriber estimate from 126m to 158m. Furthermore, we have run a scenario analysis with ten year penetration rates of 20% (broadly in line with our current estimates), 30% and 40%. These latter two scenarios deliver dramatic upside to our base case and imply upside risk. We are raising our PT from $303 to $385 and reiterating our Overweight stance.Netflix is engaged in subscription streaming entertainment service including TV series, documentaries and feature films across a variety of genres and languages. Members can watch as much as they want, anytime, anywhere, on any internet-connected screen. Members can play, pause and resume watching, without commercials. Additionally, several members in the United States subscribe to the company's DVD-by-mail service. The company improves its streaming content with a focus on a programming mix of content. The company's members can download a selection of titles for offline viewing. The company operates its business as a global operating segment.
Formed in 2003 by an established team from Cazenove, one of the most respected investment banks in the UK, Atlantic Equities conducts and publishes fundamental, bottom up research on mid and large cap US companies.
Atlantic provide order execution through a wide range of DMA products and algorithmic trading suites.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.