Just a day before the release of first quarter earnings of current fiscal year, Netflix Inc. received a vote of confidence from UBS –a sell side firm. The research firm increased the stock of the company to Buy from Neutral and raised the price objective to $565. The new price target now reflects a 24.3% from the last closing stock price.
This price target and rating revision is the fourth this month pointing out the confidence on the quarterly earnings from the street. The previous three revisions were from research firms BMO Capital Markets and Goldman Sachs and Nomura.
Goldman Sach’s Heath P Terry was the first one to revise the viewpoint regarding Netflix Inc. stock in the current month, surging the target price to $510 by adding almost $50, but maintained its Buy rating to the stock.
Goldman Sachs revision was similar to the one from BMO Capital Markets, Edward S Williams, who increased the price target by $50 and set a new price at $450, but maintained market perform outlook.
The recent revision was from Nomura’s, Anthony J Dicemente, who raised the price objective to $515 and rated the stock as Buy.
These revisions by different sell side firms have played an important role in restoring the confidence of the shareholders with the appreciation in the stock price by almost 9.78% during the last week. Analysts believes he company’s stock at this moment is risky as past records shows highly instability during the very next day after the release of earnings reports. If the company was not able to meet the estimation of these research companies, there will be an substantial downside in the stock price, while potential upside has been reflected recently.
On the whole, sell side firms are bullish about the Netflix stock, with twenty three analysts out of 47 polled on Bloomberg gave Buy rating to the stock, 18 assigned hold rating and only 6 suggested Sell rating.
The 12-monthe mean target price currently stands at $453.03 specifying a negative potential of 0.3% return.
The firm with the most bullish outlook was BTIG LLC with $600 price target. Conversely, Wedush’s Michael Pacter was the one with the most bearish outlook with $245 target price.
The stock of the live video streaming company closed 0.85% up on Tuesday increased more during after-market trading by 0.27%, trading at 479.98 at 7:59 OPM EDT. The Los Gatos based company has 28,78 billion of market capitalization.