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Fly News Breaks for April 17, 2019
Apr 17, 2019 | 06:48 EDT
JPMorgan analyst Doug Anmuth raised his price target for Netflix (NFLX) to $450 from $435 and reiterates an Overweight rating on the shares following last night's Q1 results. While the earnings report "may be controversial to some," mostly because of the light Q2 subscriber outlook, there's "much more to like here than not," Anmuth tells investors in a research note. Netflix's Q1 paid net adds of 9.6M and operating margin of 10.2% is above expectations and the company expects 2019 paid net adds to be greater than in 2018, the analyst points out. Further, he sees a "strong" back half of 2019 content slate across series and films. While 2020 will bring a more competitive landscape, the secular global streaming trend and ongoing improvements to Netflix's product should continue to drive "strong" sub growth, says Anmuth. He continues to believe that Disney+ (DIS) will not be a major threat to Netflix subscriber numbers.