Analyst Update: AMC Networks Inc, Netflix, Inc., and Take-Two Interactive Software, Inc.

Analysts adjusted their ratings on AMCX, NFLX, and TTWO

by Josh Selway

Published on Dec 22, 2014 at 12:55 PM
Updated on Apr 20, 2015 at 5:32 PM

Analysts are weighing in today on media companies AMC Networks Inc (NASDAQ:AMCX) and Netflix, Inc. (NASDAQ:NFLX), as well as video game maker Take-Two Interactive Software, Inc. (NASDAQ:TTWO). Here's a quick look at today's brokerage notes on AMCX, NFLX, and TTWO.

  • Pacific Crest initiated coverage on several entertainment stocks last evening, one of which was AMCX. The brokerage firm started the equity with a favorable "outperform" rating, stating that, out of the companies it began coverage on, AMC Networks Inc has "the most potential upside." The positive note prompted a modest increase for the shares today. AMCX's current price of $62.60 is still 8% below its year-to-date breakeven mark, and analysts are split in their opinions. Specifically, half of the covering firms issue "strong buy" recommendations, and the other half maintain "hold" ratings. There's no ambiguity in AMCX's options pits, however, as its 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 2.05 sits in its 97th annual percentile. This reading suggests that calls have been bought to open over puts at a faster rate only 3% of the time in the past year.

  • Meanwhile, NFLX saw its price target lowered to $494 from $511 at Topeka Capital Markets, which also softened its fourth-quarter and 2015 earnings estimates. However, the firm maintained its "buy" endorsement on the shares, which have dropped 1.4% today to trade at $335.54. The move puts Netflix, Inc. 8.9% below its year-to-date breakeven level. Elsewhere, sentiment in the analyst community is mixed, with the stock receiving 14 "buy" or better ratings, 14 "holds," and two "sell" or worse recommendations. Speculators are looking to the upside, though, as NFLX's 50-day ISE/CBOE/PHLX call/put volume ratio of 1.05 ranks in the 94th percentile of its annual range.

  • TTWO today hit a nine-year high of $28.83, after Wedbush raised its price target by $5 to $24, but reaffirmed its tepid "neutral" note. The stock was last seen 1.7% higher at $28.60, which is nothing new, considering its 64.7% increase in 2014. Regardless, five of the 12 brokerage firms covering Take-Two Interactive Software, Inc. deem it just a "hold," with the seven remaining analysts issuing "strong buy" ratings. There's still plenty of buying power on the sidelines, too, with over 18% of TTWO's float sold short. It would take short sellers over two weeks to buy back their bets, at the security's average daily trading pace.

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