Analyst Expects Original Content to Keep Netflix Stock Rallying

The FAANG stock landed its highest price target on Wall Street just last week

Managing Editor
Jul 3, 2018 at 9:16 AM
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Shares of Netflix, Inc. (NASDAQ:NFLX) are up 0.6% in pre-market trading, after Cowen and Company hiked its price target to $430 from $375 on the streaming service -- nearly 8% upside to last night's close of $398.18. Analyst John Blackledge said he sees a strong second quarter from the FAANG stock, expecting the company's growing catalog of original content "serving as a positive tailwind."

Overall it has been a exceptional year of trading for Netflix, which recently touched a fresh record high of $423.21 on June 21. Since then, the FAANG stock has pulled back slightly, though any negative price action has been quickly contained by the 20-day moving average. NFLX has picked up an impressive 166% over the past 12 months.

Unsurprisingly, Cowen is far from the only brokerage firm that's bullish on the tech name. In fact, just last week the FAANG stock landed its highest price-target on Wall Street. At last glance, 33 firms are covering Netflix stock, with 21 sporting "buy" or better recommendations. However, NFLX's average 12-month price target comes in at $360.61 -- representing a slight discount to current levels.

As for recent options activity on NFLX, there's been notable action at the July 450 and 480 calls, both of which saw large increases in open interest during the past 10 days. Those who bought to open the calls are betting on the security rallying to fresh record highs in the coming weeks, with the contracts set to expire at the close on Friday, July 20.
 

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