Netflix: Needham Upgrades to Hold, Boosts Target

July 1, 2008 at 5:00 am PT

Needham’s Charlie Wolf this morning raised his rating on Netflix (NFLX) to Hold from Under Perform, and lifted his price target on the Web-based video rental company to $25 from $22. Wolf said he has revised his model of the company’s business, and that his previous model “materially under-estimated the value of the company.” His previous model assumed the profitability of a subscriber was independent of how long someone has been a customer; but now he says that “the profitability of a subscriber increases with the length of time he maintains his subscription.”

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Tagged with: Barrons, Charlie Wolf, Eric Savitz, frontpage, Needham, Netflix, Tech Trader Daily

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