The analyst believes that Netflix is the main beneficiary of the sector's momentum.
UBS confirms its Buy recommendation on the stock and raises its price target to $560 (from $500), representing a 17% increase on the current price.
We expect estimates and multiples to rise as the industry raises prices, consolidates platforms, cuts expenses and renews partner licenses," says UBS.
For Q4, Netflix expects EPS of $2.15, an operating margin of 13.3%, revenues of around $8.69 billion and operating income of $1.16 billion.
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Netflix, Inc. specializes in on-line broadcasting services for films and television series provided continuously by subscription. Members pay a monthly fee for access to unlimited on-demand content on their computers (PC and MAC), portable telephones, televisions, or other devices (Xbox 360, PlayStation, Wii, Blu-Ray, etc.) connected to the Internet.
Net sales are distributed geographically as follows: the United States and Canada (44.2%), Europe/Middle East/Africa (32.1%), Latin America (11.9%) and Asia/Pacific (11.8%).
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