Analyst Update: Netflix, Fidelity, and Microsoft

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

Apr 10, 2015 at 11:33 AM
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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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