Netflix upgraded to Buy from Neutral at UBS

UBS analyst John Hodulik upgraded Netflix to Buy from Neutral with a price target of $390, up from $350, following last night’s results. The analyst sees Netflix as the main beneficiary of easing competition in direct-to-consumer streaming as peers focus on profits. This will drive upside to subscribers and pricing power in the coming years while also "keeping a lid" on content costs, one of the biggest swing factors for Netflix’s profits and free cash flow, the analyst tells investors in a research note. The firm sees a "compelling risk/reward" at current share levels and expects Netflix’s growth to inflect in Q3 and beyond.