Netflix target raised to $400 at Pivotal Research Group
Pivotal Research Group raises their NFLX tgt to $400 from $300. Firm tweaked their LT int'l subscriber forecasts higher +20M to 250M int'l subscribers by '24 (up from 230M), raised their long term U.S. ARPU expectations +1 higher (to $16 in ‘24) on NFLX demonstrated pricing power and reduced their '24 int'l ARPU forecast (-$1.00 to $12.50) to better reflect future subscribers from likely lower ARPU generating countries. Firm also reminds investors that post 4Q results [which included much higher than forecast 4Q (and '18 guidance) marketing expenses] the market appeared to effectively give NFLX mgmt carte blanche to spend aggressively to drive healthy subscriber growth. All else being equal with the broader markets, as long as NFLX continues to beat and raise on subscribers they believe the stock will continue to work