Wolfe Research downgraded NFLX to "peer perform" from "outperform"
The shares of Netflix Inc (NASDAQ:NFLX) are moving lower today, as analysts grow more pessimistic toward the streaming giant. Wolfe Research downgraded NFLX to "peer perform" from "outperform," citing concerns after the company's growth forecast, while MoffettNathanson cut its price target to $325 from $380, noting that the crackdown on password sharing appears to have a negative impact. These bear notes come after no fewer than four analyst price-target cuts just this week.
At last glance, Netflix stock was down 1.4% at $356.22, and on track for its fourth-straight day of losses. Now trading at its lowest levels since May, the stock is still up 21.1% since the start of the year.
Analysts are fairly split on NFLX, with 25 of the 44 in coverage carrying a "buy" or better rating on the stock, and 19 a "hold" or worse. Meanwhile, the 12-month consensus price target of $458.63 sits at a 29.2% premium to current levels.
The stock will likely see some volatility next week as well, as it's no stranger to large post-earnings swings. Netflix will report earnings after the close on Wednesday, Oct. 18, with options traders pricing in a next-day move of 10.1% -- slightly lower than the 12.4% move the stock has averaged over the past two years. Following its last eight earnings reports, NFLX has finished higher only three times.