Investment Analysts’ Recent Ratings Updates for Netflix (NFLX)
Several investment firms have updated their stock ratings and price targets on shares of Netflix (NASDAQ: NFLX) in the last week:
- Netflix had its “overweight” rating reaffirmed by analysts at Morgan Stanley. They now have a $85.00 price target on the stock. They wrote, “Netflix’s domestic business is very capable of supporting valuation at current levels. Any incremental decrease in churn will drive much lower revenue volatility as well as margin expansion. While international is driving the consolidated business to breakeven levels, we believe there is real option value in the global story.”
- Netflix had its price target lowered by analysts at Oppenheimer from $100.00 to $80.00. They now have an “outperform” rating on the stock.
- Netflix was given a new $70.00 price target on by analysts at Goldman Sachs.
- Netflix was given a new $65.00 price target on by analysts at BMO Capital Markets.
- Netflix was given a new $60.00 price target on by analysts at Jefferies Group. They now have a “hold” rating on the stock. They wrote, “Decent 3Q12 results were overshadowed by guidance that reflects continuing pressure on margins and increasing competition. Solid domestic DVD results offset some weakness in US streaming while int’l streaming subs (total and paid) surpassed our and Street expectations. However, 4Q12 guidance came in below expectations and was particularly weak for the US streaming segment.”
- Netflix was given a new $65.00 price target on by analysts at Piper Jaffray.
- Netflix had its price target lowered by analysts at Citigroup to $100.00. They now have a “buy” rating on the stock.
- Netflix had its “underperform” rating reaffirmed by analysts at Wedbush. They now have a $45.00 price target on the stock. They wrote, “Management lowered full year net adds guidance to 4.73 – 5.43 million, well below the 7 million guidance it has provided all year. The magnitude of the Q3 miss was only 0.6 million, with guidance lowered by 1.57 – 2.27. Most importantly, Netflix has steadfastly claimed that its content costs are “fixed” (we disagree), meaning that contribution profit will be significantly lower than consensus in 2013. … In our view, Netflix has already converted the vast majority of potential streaming subscribers on mobile devices, consoles, and smart TVs into paying subscribers. We view next month’s launch of the Nintendo Wii U, the next generation of consoles (to be released in 2013 or 2014), and additional iterations of mobile phones and tablets as inconsequential drivers of growth.”
Netflix, Inc. opened at 60.1177 on Thursday. Netflix, Inc. has a 1-year low of $52.81 and a 1-year high of $133.43. The company has a market cap of $3.339 billion and a price-to-earnings ratio of 34.24.
Netflix, Inc. (Netflix) is an Internet subscription service streaming television shows and movies. The Company’s subscribers can watch unlimited television shows and movies streamed over the Internet to their televisions, computers and mobile devices, and in the United States, subscribers can also receive digital versatile discs (DVDs) delivered to their homes.