Netflix price target raised to $525 from $510 at KeyBanc

KeyBanc raised the firm’s price target on Netflix (NFLX) to $525 from $510 and keeps an Overweight rating on the shares. The analyst believes more app and entertainment businesses are transitioning from user or payer growth stories to pricing stories. Based on Netflix’s history, “this goes smoothly when engagement metrics are improving,” the analyst tells investors in a research note. Within the internet sector, the firm feels most confident on Netflix’s and Spotify’s pricing story given their “proven pricing power and product leadership.” With Netflix improving its licensed content mix, scaling its ad-supported tier and competition rationalizing, its future price increases could be less disruptive to the business, contends KeyBanc.