Netflix (NFLX) PT Raised to $60 at Wedbush; FCF Burn Being Overlooked
- Wall St. lower as earnings from some big names disappoint
- Unusual 11 Mid-Day Movers 10/25: (CWEI) (NXTD) (EYES) Higher; (DPRX) (CRBP) (CALA) Lower (more...)
- General Motors (GM) Tops Q3 EPS by 28c
- Procter & Gamble (PG) Tops Q1 EPS by 5c
- DuPont (DD) Tops Q3 EPS by 14c; Boosts FY16 EPS Outlook; Says Continuing to Work with Regulators
Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.
Wedbush analyst Michael Pachter raised his price target on Underperform-rated Netflix (NASDAQ: NFLX) to $60.00 (from $50.00) following Q3 results. Pachter said FCF burn is being overlooked as investors focus on sub growth.
Pachter commented, "We continue to believe that Netflix is overvalued. Netflix continues to spend exorbitantly for original and exclusive content, while international profitability remains elusive and competition for both content and subscribers is becoming more fierce. In addition, cash burn is unacceptably high, and we are skeptical that the company can successfully build a content library that will justify its high level of spending. In our view, Netflix's current share price fails to address the potential for meaningful competition from Amazon, which recently launched a video-only subscription option of its own, and although we acknowledge that Netflix has the much more powerful brand for SVOD, we are confident that with its new standalone service, Amazon declared war on Netflix."
Shares of Netflix closed at $99.80 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Netflix (NFLX) PT Raised to $140 at Guggenheim
- UPDATE: CommVault Systems (CVLT) PT to $62 at Mizuho Following Strong Q2
- Fossil Group (FOSL): Successful Wearables Launch May Open The Door To Growth - Wells Fargo
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!