Analyst Update: Netflix, Inc., Fidelity National Information Services, Inc., and Microsoft Corporation

Analysts adjusted their ratings on Netflix, Inc. (NFLX), Fidelity National Information Services (FIS), and Microsoft Corporation (MSFT)

by Griffin Kruse

Published on Apr 10, 2015 at 11:33 AM
Updated on Apr 20, 2015 at 5:32 PM

Analysts are weighing in today on streaming king Netflix, Inc. (NASDAQ:NFLX), banking technology provider Fidelity National Information Services (NYSE:FIS), and blue chip Microsoft Corporation (NASDAQ:MSFT). Here's a quick look at today's brokerage notes on NFLX, FIS, and MSFT.

  • Citigroup raised its opinion on NFLX to "buy" from "neutral" while hiking its price target to $525 from $409, with the brokerage firm saying that Netflix, Inc.'s well-received line-up of new content should be a positive catalyst for subscriber growth. At last check, the shares of NFLX were up 3.1% to $453.23, increasing their year-to-date lead to 32.7%. The brokerage bunch is lukewarm at best on the equity, though, as 48% of covering analysts rate it a "hold," "sell," or "strong sell." What's more, NFLX's consensus 12-month price target of $452.69 sits below current trading levels, leaving plenty of room for additional bullish notes.

  • Last night, FIS downwardly revised its first-quarter and full-year earnings guidance, prompting Barclays and Goldman Sachs to weigh in on the security. Specifically, Barclays cut its price target to $71 from $73, and Goldman Sachs lowered its price target to $52 from $54, with the latter keeping its "sell" rating. On the charts, the shares of Fidelity National Information Services are down 5.8% to $64.15, with today's bearish gap putting the stock south of support in the $65 area. This region has provided a floor for FIS in recent weeks, as the stock has been in consolidation mode since tagging a record high of $68.98 in late February. However, quite a few bears have been betting on a top for FIS, as short interest on the shares ballooned by nearly 38% over the past two reporting periods. The current accumulation of short interest represents 4.3 times the stock's average daily trading volume.

  • Barclays lowered its price target on MSFT to $48 from $49 while underscoring its "overweight" rating. Despite the cautious note, the shares of Microsoft Corporation are 0.9% higher today to $41.87. Looking back, though, the stock has taken a slide, with the shares down 16.3% from November's 14-year high of $50.04. Traders have stayed optimistic, as MSFT's 50-day ISE/CBOE/PHLX call/put volume ratio of 2.06 stands in the 85th percentile of its annual range. Should the shares resume their recent downtrend, a capitulation of bulls in the options pits could pressure them even lower.

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