Netflix’s “Neutral” Rating Reiterated at Zacks (NFLX)
Netflix (NASDAQ:NFLX)‘s stock had its “neutral” rating reaffirmed by Zacks in a research note issued to investors on Friday. They currently have a $496.00 price objective on the stock. Zacks‘s price objective would suggest a potential upside of 5.07% from the stock’s previous close.
Zacks’ analyst wrote, “Netflix reported strong second-quarter 2014 results. Earnings beat the Zacks Consensus Estimate by $0.01, while revenues were in line with the same. Management provided cautious guidance for the rest of 2014. We believe that the expanding content portfolio, innovative show pipeline for the second half and robust on-demand viewing from international customers are the key growth catalysts. Additionally, Netflix’s increasing subscription price will drive top-line growth. However, increasing content acquisition costs and rising operating expenses are significant headwinds. FCC’s new proposal (if approved) that allows ISPs to charge a fee for faster connections is a major concern. Additionally, the expansion into new International markets will dent profitability in the near term. Thus, we remain Neutral and set a target price of $496.00.”
A number of other analysts have also recently weighed in on NFLX. Analysts at Wells Fargo & Co. reiterated a “market perform” rating on shares of Netflix in a research note on Friday, August 15th. Separately, analysts at Topeka Capital Markets raised their price target on shares of Netflix from $517.00 to $527.00 in a research note on Monday, August 11th. They now have a “buy” rating on the stock. Finally, analysts at Citigroup Inc. reiterated a “neutral” rating on shares of Netflix in a research note on Tuesday, July 22nd. They now have a $453.00 price target on the stock, up previously from $410.00. Six research analysts have rated the stock with a sell rating, sixteen have issued a hold rating and twenty have given a buy rating to the stock. Netflix has an average rating of “Hold” and a consensus target price of $426.91.
Shares of Netflix (NASDAQ:NFLX) traded up 1.28% during mid-day trading on Friday, hitting $478.08. 1,377,278 shares of the company’s stock traded hands. Netflix has a 52 week low of $269.02 and a 52 week high of $476.15. The stock’s 50-day moving average is $443.6 and its 200-day moving average is $408.8. The company has a market cap of $28.728 billion and a price-to-earnings ratio of 141.54.
Netflix (NASDAQ:NFLX) last issued its quarterly earnings data on Monday, July 21st. The company reported $1.15 EPS for the quarter, beating the Thomson Reuters consensus estimate of $1.14 by $0.01. The company had revenue of $1.34 billion for the quarter, compared to the consensus estimate of $1.34 billion. During the same quarter in the prior year, the company posted $0.49 earnings per share. The company’s quarterly revenue was up 25.4% on a year-over-year basis. Analysts expect that Netflix will post $3.88 EPS for the current fiscal year.
Netflix, Inc is an Internet television network with more than 44 million members in over 40 countries.
To view Zacks’ full report, visit Zacks’ official website.
Get Analysts' Upgrades and Downgrades via Email - Stay on top of analysts' coverage with Analyst Ratings Network's FREE daily email newsletter that provides a concise list of analysts' upgrades and downgrades. Click here to register now.