This Analyst Has The Highest Netflix PT, But Projects Earnings Well Below Street Consensus

After surging on back of the 7-for-one stock split, Netflix, Inc. (NASDAQ: NFLX) shares cooled down on Wednesday following Carl Icahn's tweets in which he revealed having sold his entire stake in the company.

BTIG analyst Rich Greenfield, who has a $950 price target on the stock, was on CNBC recently to discuss why he is so bullish on the company.

Related Link: Netflix Announces Seven-For-One Stock Split

It's Winning The Viewership Battle

"The reality is, people have made a lot of money – there are not too many stocks that are up a 100 percent year-to-date," Greenfield began. "This has been a pretty sharp rocket ship over the course of the last year. Look, what's happening is TV viewing is shifting."

He continued, "If you look at the numbers Nielsen reported this week, you are looking at a mid-teens drop in viewing of TV among 18 to 24, high single digit among people 25 to 34. There is something fundamentally shifting; consumers are shifting their viewing to streaming, and Netflix is winning that battle."

Related Link: Did Netflix Just Hit Its Top?

Street Is Modelling It Incorrectly

Greenfield was asked how he has a price target of $950 on Netflix when his notes to clients highlight that his earnings projections for Netflix are well below the Street's consensus estimates. He replied, "Because most people that are modelling this company are not doing it properly. The company has been very clear. They are taking their U.S. profits, even some of their overseas profits, the early markets that they have launched in – and they are aggressively reinvesting."

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