Netflix Price Target Raised To $190 From $165 At Cantor

Cantor Fitzgerald analyst Kip Paulson raised his price target for Netflix to $190 from $165 to reflect higher international streaming subscriber growth. The shares closed yesterday down 12c to $165.06.

Broadband household penetration is less than 6% internationally, which suggests a "very long runway for growth" for Netflix subscriptions, Paulson tells investors in a research note. The analyst increased his out-year subscriber growth estimates to "at least" match 5%-6% global broadband household growth, which brings his 2024 subscriber estimate to 234M.

If the U.S. level of penetration were attained globally, it would mean hundreds of millions more Netflix subscribers, the analyst contends. He keeps a Buy rating on the shares. With Netflix nearing 50% penetration of broadband households in the U.S., Paulson expects domestic streaming subscriber growth to slow from high single-digits to mid-single-digits over the next few years. He remains positive on Netflix shares given the company's "substantial" long-term growth potential, particularly in international markets.