Netflix (NFLX) could have more room to run. Especially if analysts at UBS are right about it beating earnings next week.  In fact, they expect NFLX to beat its own guidance for the second quarter.  They also expect earnings to grow even stronger in the next two quarters, as well.

“We are raising estimates following positive data on paid sharing. Checks on engagement, downloads & search interest were all constructive for the newly launched paid sharing markets” said the firm, as quoted by Barron’s. “Netflix reports second-quarter results next Wednesday. UBS expects the company to add 3.6 million subscribers for the quarter, beating the Wall Street consensus of 2.1 million.”

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UBS analysts also raised their target price on the stock to $525 from $390, with a buy rating.

Morgan Stanley also raised its price target on NFLX to $450 from $350 a share.

Analyst Benjamin Swinburne, who has an equal-weight rating on Netflix now expects the company to add 2.2M subscribers in the second quarter, up, from a prior 1.55M, due to “more modest churn” from the paid sharing announcements in the U.S. and Canada, as well as “solid” app download trends, as noted by Seeking Alpha.


Ian Cooper