Streaming Stock Brushes Off Analyst Bull Note

There remains plenty of room for more upgrades

Managing Editor
Jan 14, 2020 at 10:41 AM
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Streaming service Netflix Inc (NASDAQ:NFLX) is inching lower this morning, now down 0.6% to trade at $336.94, despite a price-target hike to $450 from $400 at Goldman Sachs. The revised price represents a healthy 32.8% upside to Monday night's close of $338.92, and the brokerage firm said it expects fourth-quarter results that are "well above" estimates. It also stated the company's investment in content should continue to pay off, despite launch of streaming rival Disney's (DIS) Disney+ in 2019. Looking ahead, Netflix is scheduled to report earnings after the close next Tuesday, Jan. 21. 

Netflix stock has been on a sharp climb higher since touching a low of $252.28 in late September. The 40-day moving average has been a layer of support for the shares since late-October, guiding the equity nearly 19% higher over the past three months alone. 

In the options pits, the stock's Schaeffer's put/call open interest ratio (SOIR) comes in at 1.07, and ranks in the 82nd percentile of its annual range. In simpler terms, this shows a larger-than-usual put-skew among options traders. An unwinding of these bearish bets could trigger a move higher in NFLX shares.

There remains plenty of room for upgrades on the streaming giant, too. Coming into today, 10 covering analysts sport a tepid "hold" or "strong sell" recommendation. 

 

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