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Investor concern about Netflix ’s ( NFLX ) U.S. subscriber growth “is overdone and myopic relative to the company’s global opportunity,” Pacific Crest Securities analyst Andy Hargreaves said in a research report Sunday. Hargreaves reiterated his overweight rating on Netflix stock with a price target of 140. Netflix stock, though, was down nearly 2%, below 104, in morning trading on the stock market today . The Internet television service is scheduled to report first-quarter results after the market close on April 18. Netflix has missed its U.S. subscriber goals in the last two quarters but has beaten its targets for international subscribers during that period. For Q1, Wall Street expects Netflix to add 1.82 million U.S. streaming subscribers and 4.17 million international subscribers. In January, Netflix guided to 1.75 million U.S. streaming subscribers and 4.35 million international subscribers. For Q2, Wall Street is modeling for Netflix to add 690,000 domestic streaming subscribers and 2.83 million international subscribers. “In both quarters, we see the potential for meaningful upside to consensus estimates for international subscribers, which could vastly outsize any potential downside in the United States,” Hargreaves said. “Investors are currently embroiled in a heated debate over a few hundred thousand U.S. subscribers. In the meantime, Netflix’s global expansion creates potential upside that is measured in the millions.” The potential for an international subscriber miss is the biggest risk to Netflix shares because it would cast doubt on the company’s biggest growth opportunity, he said. In the streaming video market, Netflix competes with Amazon.com ( AMZN ), Hulu and other players. Image provided by Shutterstock . RELATED: Netflix, Amazon, Akamai Benefiting From Cable Cord-Cutters Surveys Show Netflix Winning In U.S., Slow Going In Japan Scalper1 News
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