Netflix upgraded to Buy from Hold at Stifel
Stifel analyst Scott Devitt upgraded Netflix to Buy from Hold with a price target of $250, up from $240, following last night's results. With signs of stabilization in the subscriber base emerging, the prospect of a "prolonged period of subscriber losses is becoming increasingly unlikely," Devitt tells investors in a research note. He believes investor focus can now "appropriately shift" to the viability of Netflix's growth initiatives, including monetizing password sharing and the introduction of advertising supported tiers, both of which will be introduced next year. Devitt sees "numerous potential catalysts" over a multi-year period as management realigns the business for its next phase of growth. The stock's valuation is compelling "for a dominant business with considerable optionality ahead," writes the analyst
