Analysts: Netflix Accounting Shift Poses No Impact to Earnings and 3 More Research Notes to Browse
Netflix (NASDAQ:NFLX): Lazard Capital points out that Netflix, in its quarterly filing, noted the potential to change its accounting for originals by accelerating amortization. The firm estimates that such a change would reduce its 2013 earnings estimate by 67 cents and 2014 estimate by 79 cents, but sees no impact to Netflix’s enterprise value since earnings would lift by a similar amount in later periods. Lazard Capital recommends using any weakness in Netflix shares around the potential accounting change as a buying opportunity and keeps a Buy rating on the stock.
Eaton (NYSE:ETN): Following Eaton’s report of weaker-than-expected second-quarter results, Argus thinks the increase in the company’s margin was an important positive. The firm believes a number of trends should help the company grow, and it keeps a $78 price target and Buy rating on the shares.
Mylan (NASDAQ:MYL): Morgan Stanley upgraded Mylan to Overweight from Equal Weight following the Thursday analyst meeting to better reflect increased visibility into growth drivers that include generic Advair and Copaxone. The price target has been set at $41.
Teva (NYSE:TEVA): Morgan Stanley downgraded Teva to Underweight from Equal Weight due to relative valuation and lower margin assumptions for Copaxone given the likelihood that Mylan will secure Food and Drug Administration generic approval. The firm notes that U.S. patents for Copaxone expire in May 2014.
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