says Netflix is a screaming “BUY” and she is raising her price target to $300 from $210.analyst Ingrid Chung
She thinks Netflix has enough users and momentum to make to near impossible for any rivals to enter the video streaming space and compete any time soon.
Chung’s not the only person on Wall Street smitten with Netflix. Last week, Bank of America/Merrill put out a glowing report on Netflix.
Here are the reasons Goldman is feeling bullish:
- 27% of US consumers are streaming TV shows/movies through connected devices — their gaming consoles, Apple TVs, Internet connected TVs, etc. Netflix has successfully gotten its software on most of those devices.
- Netflix is now big enough that it’s harder for rivals to enter the space and offer low monthly subscription prices AND still bid big bucks to get expensive content.
- While competition thus far has been weak, demand for streaming content could be large enough to support a few companies.
That’s why Netflix will continue on its way, here’s why it could explode higher:
- Netflix could announce partnerships with ISPs around the world making it easier to attack new markets.
- It will expand to a number of new markets. (Goldman estimates that it’s already hit 10% of the Canadian market in just 6 months.)
- Netflix will be getting more and more content deals.
- Earnings will be strong — expect Q1 subscription growth and Q2 guidance to be strong.