[b]CFRA reiterated Buy rating and raise 12-month target price by $35 to $270
[/b]
On premium ’18 price-to-sales of 7.8X, with a sizable upside to long-term growth.
We raise ’18’s EPS estimate by $0.17 to $2.38 and set ’19’s at $3.82. Q4 EPS of $0.41 vs. $0.15 matched consensus.
Revenues rose 33%, with global subscriber additions of 8.33M (international and U.S. up 6.36M and 1.98M), beating guidance by 2M for an all-time quarterly record. With more U.S. traction and key international momentum, NFLX sees Q1 net adds of 6.35M and ’18 EBIT margins of 10% (300 basis point expansion after ratcheted content spend
).