Barclays Maintains an 'Overweight' on Netflix (NFLX); Subscriber Reset Worse than Feared
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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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Barclays maintains an 'Overweight' on Netflix (NASDAQ: NFLX) price target sizzled down from $260.00 to $125.00.
Barclays analyst says, "NFLX shares are under pressure following 3Q results for two reasons. First, 4Q subscriber guidance for both the streaming and DVD businesses came in below estimates given a wave of cancellations in response to the pricing change. Secondly, Netflix guided towards operating losses starting in the 1Q of 2012 for a few quarters owing to international business. We believe the capitulation in shares is overdone and would point to two encouraging data points: 1) gross subscriber additions were up 20% Y/Y in the 3Q despite the subscriber reset, and 2) unique Netflix subscribers are expected to be slightly up in Q4. These two points may not have been readily apparent upon a cursory read of the shareholder letter."
For more ratings news on Netflix click here and for the rating history of Netflix click here.
Shares of Netflix closed at $118.84 yesterday.
Barclays analyst says, "NFLX shares are under pressure following 3Q results for two reasons. First, 4Q subscriber guidance for both the streaming and DVD businesses came in below estimates given a wave of cancellations in response to the pricing change. Secondly, Netflix guided towards operating losses starting in the 1Q of 2012 for a few quarters owing to international business. We believe the capitulation in shares is overdone and would point to two encouraging data points: 1) gross subscriber additions were up 20% Y/Y in the 3Q despite the subscriber reset, and 2) unique Netflix subscribers are expected to be slightly up in Q4. These two points may not have been readily apparent upon a cursory read of the shareholder letter."
For more ratings news on Netflix click here and for the rating history of Netflix click here.
Shares of Netflix closed at $118.84 yesterday.
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