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Netflix Q2 sub guidance, higher tax rate 'only flaws,' says Imperial Capital. Imperial Capital analyst David Miller says Netflix's Q1 results were ahead of guidance on "every relevant metric." The "only flaws" were U.S. subscriber guidance missing expectations and a higher effective tax rate for Q2, Miller tells investors in a post-earnings research note. The analyst maintains an Outperform rating on the shares with a $463 price target. However, he reduced his 2019 earnings estimates due to the expectation of higher effective taxes and 2020 earnings estimates due to higher spending and expenses. Nonetheless, Miller continues to see "multiple content-centric catalysts splayed throughout 2019." Netflix investors still have plenty to look forward to in terms of additional catalysts for subscriber growth throughout the year, he writes.

Netflix price target raised to $450 from $440 at Credit Suisse. Credit Suisse analyst Douglas Mitchelson raised his price target for Netflix (NFLX) to $450 from $440 due to the lower 15% terminal tax rate. Commenting on the company's quarterly results, the analyst notes that while not the net add beat many were hoping for, outlook commentary was "quite bullish," especially record first half of the year paid net additions in the face of record price increases, revenue growth accelerating the next few quarters, and a "very strong" second of the year content slate. Investor consternation will now shift from price increase churn to competition, but Disney+ (DIS) concerns are misplaced, he contends. Mitchelson reiterates an Outperform rating on Netflix's shares.

Netflix price target raised to $183 from $165 at Wedbush. Wedbush analyst Michael Pachter raised his price target for Netflix to $183 from $165 as Q1 results surpassed guidance and expectations. Nonetheless, the analyst expects content spending to trigger substantial cash burn for many years, while content migration and price hikes could cause a deceleration in subscriber growth, and consistently negative free cash flow makes DCF valuation impossible. Pachter reiterates an Underperform rating on the shares.

Netflix 'pricing power on display' in Q1 report, guidance, says Morgan Stanley. Morgan Stanley analyst Benjamin Swinburne noted that Netflix reported stronger than expected Q1 subscriber growth in both the U.S. and internationally and that the company believes there has been no impact from its higher price increases on gross additions. Following the report, Swinburne raised his 2019 global paid net additions forecast to 30M from a prior 29M subscriber forecast and he continues to forecast steady EBIT margin expansion of 300 basis points annually and sees free cash flow turning positive in 2021. He keeps an Overweight rating and $450 price target on Netflix shares.