Netflix Buy rating has been reaffirmed by Cantor Fitzgerald analysts in a research note issued on Thursday. The streaming company has been given a new price target of $415.
Recent analyst ratings
Stifel Nicolaus have downgraded Netflix from a Buy rating to a Hold rating in a research note released on November 25. They assigned a price target of $380.00 to shares. Zacks analysts have maintained Neutral rating on the stock in a research note issued on October 17, and assigned a price target of $380 to the streaming company. The Street analysts downgraded Netflix from Buy to a Hold rating in a research note on October 15th. Presently, Netflix has a consensus rating of Buy and an average price target of $451.90.
Value Partners Asia ex-Japan Equity Fund has delivered a 60.7% return since its inception three years ago. In comparison, the MSCI All Counties Asia (ex-Japan) index has returned just 34% over the same period. The fund, which targets what it calls the best-in-class companies in "growth-like" areas of the market, such as information technology and Read More
Also, the online streaming company saw large options trading on Monday, when investors purchased 29,623 put options on the company. This is an increase of around 120% compared to the average daily volume of 13,495 options.
Netflix down, but will bounce back
In 2013, Netflix shares surged higher as the firm added more subscribers, but in 2014, fortunes for the company swung between positive and negative, eventually driving shares down around 30% over the last three months of the year.
In the month of October, subscriber growth surged significantly, but the growth rate was below expectations. Netflix performance was better than the market prior to the earnings announcement in October. The shares surged almost 20%, compared to 5% for the S&P between January and beginning of October.
There is no doubt that Netflix is a strong company, and it has proven its worth by adding 3 million new users in the third-quarter. The firm now boasts a total of 53 million users, which is acceptable even if the expected subscriber growth was 3.7 million. Another potential share price mover going into 2015 is the company’s deal with Dish, which was announced a few days ago. The deal with Dish sould help the streaming service expand its subscriber base.
Revenue for the company spiked at around 21% in fiscal 2013, and for 2014 it is expected to rise by 25%. For Netflix, growth is expected to be strong and the company is looking forward to adding another 4 million subscribers in the fourth-quarter, and nearly half the additions are expected to be from overseas.