Netflix received two target price revisions from street analysts today as the date of earnings release comes closer.
With only one month left in its first quarter earnings report of current fiscal year, the sell-side analysts started commented on the stock of Netflix Inc.
The first quarter period covering from January to March is very unstable for the company, with past data showing almost 19.34% and 17.34% movement in the share price on third and fourth quarter of 2014 earnings release day. The price tendency continued in both the quarters for a couple of days, and causing an overall change in price over 25% in both the situations.
The volatility in price was not because of revenues or earnings of the quarter, as the streaming giant surpassed the expectations of the analysts regarding earnings in both back to back quarters. However, it was not able to meet the expectations in revenue so the surplus earnings forced the stock price to go up. The change in price was because of the growing number of fresh subscribers. During the 3rd quarter Netflix missed the subscription growth target, which pushed the share price down so in the next quarter it surpassed the growth target and share price surged.
By reviewing two of the sell-side reports, it can be seen that the street is optimistic about the company’s quarter results. The Streaming Services provider surpasses the expectations, so price target has been raised by both the sell-side companies.
Shareholders were dazed with the share price increasing during pre-market trading. Netflix Inc. went up by 1.18% in pre-market session after plunging by 0.7% in yesterday trading.
Cantor Fitzgerald analyst Youssef H Squali recently commented on the stock and has raised the target price to $500 from previous $450 and reiterates Buy rating.
Another analyst of Barclays, Paul Vogel surged the target price to $450 from $400 on the stock while repeated the equal weight rating.
Overall, almost 50 sell-side analysts were polled by Bloomberg, put of which 22 suggested a rating of Buy, 20 have given Hold rating and remaining 6 stood with Sell rating. The average revised target price now stands at $41.72.
BTIG LLC holds its current position as the sell-side company with more bullish viewpoint on Video Streaming services company’s stock. BTIG LLC analyst Richard Greenfield gave a highest target price of $600 for the company’s share along with a rating of Buy. Conversely, Wedbush analyst Michael Pachter has the most bullish viewpoint to the stock with $245 price target and underperforms rating.