Goldman Sachs Resumes Netflix (NFLX) at Neutral
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Price: $228.74 +1.13%
Rating Summary:
15 Buy, 18 Hold, 10 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Rating Summary:
15 Buy, 18 Hold, 10 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
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Goldman Sachs resumes coverage on Netflix (NASDAQ: NFLX) with a Neutral and $82 price target.
The firm notes the company is facing rising content costs, the uncertainty of international expansion, and at least a year of heavy investment spending. That said, the firm has long-term competitive advantages and they expect the stock to recover once these issues are resolved.
Goldman said the company's recent decision to raise prices and unbundle its US service accelerated the shrinking of the "sweet spot" the company has enjoyed. Also, while they expects the company's expansion into international markets to be successful, the initial investment and ts strategic missteps in the US will result in earnings well below consensus street forecasts.
With $3.4 billion committed to content costs of the next 5 years, Netflix will be unable to remain profitable without continued subscriber growth, the firm said.
For an analyst ratings summary and ratings history on Netflix click here. For more ratings news on Netflix click here.
Shares of Netflix closed at $72.11 yesterday, with a 52 week range of $62.37-$304.79.
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The firm notes the company is facing rising content costs, the uncertainty of international expansion, and at least a year of heavy investment spending. That said, the firm has long-term competitive advantages and they expect the stock to recover once these issues are resolved.
Goldman said the company's recent decision to raise prices and unbundle its US service accelerated the shrinking of the "sweet spot" the company has enjoyed. Also, while they expects the company's expansion into international markets to be successful, the initial investment and ts strategic missteps in the US will result in earnings well below consensus street forecasts.
With $3.4 billion committed to content costs of the next 5 years, Netflix will be unable to remain profitable without continued subscriber growth, the firm said.
For an analyst ratings summary and ratings history on Netflix click here. For more ratings news on Netflix click here.
Shares of Netflix closed at $72.11 yesterday, with a 52 week range of $62.37-$304.79.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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