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Get Four
|  | JANUARY 22, 2004
 WORD ON THE STREET First Albany Raises NetFlix Price Target Analyst Youssef Squali says the online video-subscription company sees $1 billion in revenue in 2006-07 First Albany raised its price target on NetFlix (NFLX ). Analyst Youssef Squali says non-GAAP fourth-quarter earnings per share of 19 cents beat estimates. He notes rapid subscriber growth has prompted the online video-subscription company to anticipate reaching $1 billion in revenue and 5% market penetration in the 2006-07 timeframe -- faster than the earlier estimated timeframe of 2007-09. Squali thinks the company's move to grab market share through higher marketing spending (including TV advertising) is critical at this time, given the lack of meaningful competition. He upped the $430 million 2004 revenue estimate to $470 million for stronger subscriber growth, but cut the $1.33 non-GAAP 2004 earnings per share to $1.29 for a higher marketing expense. Squali also upped the $55 target price to $72. He maintains his buy rating.  All of the views expressed in this research report accurately reflect the research analyst's personal views regarding any and all of the subject securities or issuers. No part of analyst compensation was, is or will be, directly or indirectly related to the specific recommendations or views expressed in this research report. Standard & Poor's Regulatory Disclosure Any advice, analysis, or recommendations contained in articles labeled "Insight from Standard & Poor's" reflect the views of Standard & Poor's, which operates separately from and independently of BusinessWeek Online. It is possible that BWOL may from time to time publish information that is not consistent with advice, analysis, or recommendations that are published by Standard & Poor's. Standard & Poor's and BusinessWeek Online are each units of The McGraw-Hill Companies, Inc.
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