Morgan Keegan Upgrades Netflix To Market Perform, Raises PT To $220 (NFLX)

Morgan Keegan upgraded its Netflix NFLX rating to Market Perform from Underperfom and raised Netflix's price target to $220 from $125 in a research report published today. In the report, Morgan Keegan states, "Overall, we now believe Netflix is capable of growing total subscribers +51%/32%, revenues +47%/+29%, and GAA EPS +47%/+25% for 2011E/2012E. Our price target goes to $220 reflecting 37.5x 2012E non-GAAP EPS, a premium to the eCommerce universe of 30x but warranted given Netflix's strong growth trajectory. This assumes ~$200 in value for the U.S. business and net cash, and ~$20 in International option value." Shares of Netflix were trading at $205.45 at the time of posting, up 12.25% from Wednesday's market close.