Streaming Stock Brushes Off Analyst Bull Note

There remains plenty of room for more upgrades

by Emma Duncan

Published on Jan 14, 2020 at 10:41 AM

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. 


A Schaeffer's exclusive

TOP STOCK PICKS 2020

Access your FREE insider report before it's too late!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


IRA/401k: The Crash-Proof Retirement Plan
Use gold to protect any IRA, 401(k), or retirement account from a looming financial crisis.
Stocks Eye Notable Weekly Gains on 3-Day Surge
Stocks are eyeing big weekly gains
WW Stock Brushes Off Bull Note
Morgan Stanley upgraded the Weight Watchers parent to "overweight" from "equal weight"
IRA/401k: The Crash-Proof Retirement Plan
Use gold to protect any IRA, 401(k), or retirement account from a looming financial crisis.