The launch of the Amazon Fire TV box...

The launch of the Amazon Fire TV box is a “win” for Netflix, said Wedbush Securities analyst Michael Pachter in a research note Monday, saying Amazon listed Netflix ahead of its own Prime Instant Video service on the list of streaming apps available for the $99 box. But Wedbush maintains an “underperform” rating on Netflix, projecting a 12-month price target of $175 compared with its midday price of $326.71 on a “sum-of-the-parts” valuation of $140 for domestic streaming, $17 per share for international streaming and $18 per share for Netflix’s domestic DVD business. Pachter predicted Q1 results, to be released April 21, will likely “meet or exceed” expectations of the street driven by a high signup rate owing to House of Cards and low ad spending during the quarter. Pachter expects Netflix management to “complain about the state of net neutrality” in the U.S. on its Q1 earnings call, while downplaying the financial impact of interconnection agreements, he said. Noting the multiyear interconnection agreement Netflix signed with Comcast in February -- which Pachter estimated to be a “material” expense -- Wedbush expects Netflix to reach similar agreements with other ISPs in coming years “to minimize throttling.” Over time, Wedbush believes interconnection agreements will force Netflix to raise prices, “limiting the company’s growth potential."