Goldman Sachs Slashes Price Target on Netflix (NFLX), Keeps Buy Rating
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Price: $78.16 -0.1%
Rating Summary:
57 Buy, 26 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
57 Buy, 26 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Goldman Sachs lowered its price target on Netflix (NASDAQ: NFLX) from $270 to $200, but kept its Buy rating on the stock.
The firm cut EPS estimates for 2011-2013 to $4.99, $5.54, $7.81 from $5.03, $6.95, and $9.63, previously.
Goldman expects investors to focus on Q4 guidance and management comments regarding why it had decided to reverse its decision to split off Qwikster. The firm notes that while some have speculated that this was related to higher churn near the end of Q3, the number of hybrid subs "saved" will more than offset the increased churn from the announcement alone.
They believe Netflix will benefit from content wins and increased device and geographic distribution, which will drive outsized subscriber gains. While well-funded competitors may emerge as viable threats, the addressable market is large enough for multiple players. They see Amazon (Nasdaq: AMZN) as the lone serious threat to Netflix.
For more ratings news on Netflix click here and for the rating history of Netflix click here.
Shares of Netflix closed at $108.66 yesterday.
The firm cut EPS estimates for 2011-2013 to $4.99, $5.54, $7.81 from $5.03, $6.95, and $9.63, previously.
Goldman expects investors to focus on Q4 guidance and management comments regarding why it had decided to reverse its decision to split off Qwikster. The firm notes that while some have speculated that this was related to higher churn near the end of Q3, the number of hybrid subs "saved" will more than offset the increased churn from the announcement alone.
They believe Netflix will benefit from content wins and increased device and geographic distribution, which will drive outsized subscriber gains. While well-funded competitors may emerge as viable threats, the addressable market is large enough for multiple players. They see Amazon (Nasdaq: AMZN) as the lone serious threat to Netflix.
For more ratings news on Netflix click here and for the rating history of Netflix click here.
Shares of Netflix closed at $108.66 yesterday.
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