Netflix price target raised to $740 from $700 at BofA

BofA raised the firm’s price target on Netflix to $740 from $700 and keeps a Buy rating on the shares. The analyst attributes the 16% in shares since the Q1 earnings report on April 19 to third party data sources indicating healthy subscriber acquisition trends, greater appreciation for the company’s “enviable market position” within the media ecosystem and optimism around the potential in advertising. These dynamics support a bullish thesis for Netflix’s longer-term potential, which will be driven by “healthy” revenue growth, continued margin expansion and “outsized” free cash flow growth over the next several years, the analyst tells investors in a research note. The firm raised the stock’s target multiple to reflect continued momentum in the underlying business. “Supported by its world-class brand, leading global subscriber base, position as an innovator and increased visibility in growth drivers, we believe that Netflix should continue to outperform,” BofA contends.