UBS is 'taking the blindfold off,' upgrades Netflix shares to Buy

UBS analyst Eric Sheridan last night upgraded Netflix to Buy from Neutral and raised his price target for the shares to $410 from $400. The streaming giant closed yesterday up $4.70 to $324.66. After six months of stock underperformance as key debates emerged about competition, margins and free cash flow, the debates are better understood by investors and reflected in the current stock price, Sheridan tells investors in a research note partially titled "Taking The Blindfold Off." The analyst sees share upside over the near-to-medium term to subscriber growth. Current subscriber metrics such as growth, churn, spend and consumption are tracking inline to better than management's Q4 guidance and commentary, Sheridan says, citing his firm's Evidence Lab.

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