Netflix upgraded to Outperform from Neutral at Baird

Baird upgraded Netflix to Outperform from Neutral with a price target of $500, up from $340. The constructive stance is driven by increased confidence in the company’s execution around new initiatives like advertising and paid sharing as well as its “strengthening” financial profile that should further improve investor sentiment over time, the analyst tells investors in a research note. The firm says near-term expectations “seem better calibrated” following Netflix’s Q2 print. The modest share pullback has provided an attractive entry point into a strengthening long-term investment case, contends Baird. The stock’s’ valuation is “admittedly rich,” but this is warranted given the company’s underlying momentum and unique qualities of the business, it writes.