Citi Reiterates Buy on Netflix

Citi is out with its report today on Netflix NFLX, reiterating Buy. In a note to clients, Citi writes, "We rate NFLX Buy/High Risk (1H). NFLX has been a leader in the online DVD subscription market due to the value and convenience of its online subscription plans. Key Investment Positives include: 1) one of the strongest fundamental growth outlooks in the Internet sector; 2) one of the most defensive business models in the sector, given deep competitive moats due to its hybrid offering; 3) inherent operating leverage in the business model given a subscription-based offering; and 4) proven International scalability given Canada segment's outlook for profitability within 4-6 quarters since launch in 2H:2010." Citi maintains a $300 PT on NFLX. At the time of posting, shares of NFLX were trading pre-market at $258.50, down 8.18% from Monday's close.