Bullish Analyst Says Netflix Could Reach $30 EPS Over Time

By Trey Williams Markets MarketWatch Pulse

MKM Partners analyst Rob Sanderson put out a bullish note on Netflix Inc. on Thursday, raising his 12-month price target on the streaming giant to $230 from $195. That represents a 23% premium to current trading levels. Sanderson also said his model suggests that Netflix hitting earnings of $30 per share is possible over time. "While we look to our $12 EPS power in 2021 as our valuation benchmark, we think there is a much larger opportunity over time," Sanderson wrote. "We think that 2021 provides a relevant benchmark for valuation, but think that the growth story will still have meaningful headroom from there. We continue to think the international opportunity is much larger. Each benchmark suggests the opportunity for Netflix outside the U.S. could be four to five times the domestic opportunity over time." Shares of Netflix were down less than 1% intraday on Thursday, but have gained more than 50% in the year to date, while the S&P 500 index is up nearly 11%.

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