Netflix Is One Of The Only True Large-Cap Growth Stories In Media

Analysts at Loop Capital Markets maintain a Buy rating on Netflix, Inc. NFLX with a price target boosted to $167 from a previous $159 as the streaming video provider represents the lone true large-cap growth story in media.

According to Loop Capital's David Miller, Netflix's dominance stems from its compelling library of legacy domestic content and acquired content in international markets. In fact, the company's strategy of incorporating foreign content in the United States and other English markets is proving to be successful as "great story-telling is universal in appeal and is easily portable into multiple markets."

For example, Israel's "Fauda" was described as being a "nail-biting" action series, while the analyst noted that Brazil's "3%" series is also an example of a foreign language show that can be a hit in international markets.

Not Too Late To Buy The Stock

Netflix's library success prompted Miller to move his first quarter net domestic subscriber estimates higher. Specifically, the analyst expects Netflix's first-quarter metrics to move from 1.50 million to 1.52 million. The analyst's revenue, cumulative EBIT and earnings per share estimates were also moved higher.

With that said, Miller believes Netflix's stock can continue moving higher even when considering the approximate 42 percent gain seen since last October.

In fact, the analyst continues to "believe it's not too late for large-cap growth PMs to take new positions in what remains one of the only true large-cap growth stories in Media."

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