Netflix, Inc. (NASDAQ:NFLX) shares are still falling the second day after the company’s most recent earnings report. Shares fell as much as 2.5 percent on Wednesday because of concerns about cash flow, content costs and subscribership growth. BMO Capital Markets analysts have actually increased their price target for the stock, indicating a slightly more positive view on it, although still a possible 5.7 percent downside.
BMO rates Netflix as Market Perform
Analysts at BMO Capital have increased their price target for Netflix, Inc. (NASDAQ:NFLX) to $236 from $205 per share. They continue to rate the stock as Market Perform.
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Price targets from analysts at other firms are in the same ballpark as the target at BMO. Janney Montgomery Scott analysts reiterated their Buy rating on Netflix and have attacked a $250 per share price target to the stock. Goldman Sachs analysts raised their price target to $285 per share and gave the stock a Buy rating. In addition, RBC Capital analysts raised their price target to $280 from $250 per share and have set an Outperform rating on the stock.
Analyst reactions to Netflix are mixed
At this point, analysts are pretty mixed in what they think about Netflix, Inc. (NASDAQ:NFLX). Seven of them have a Sell rating on the stock, while 20 of them have a Hold rating and nine of them have a Buy rating on it. The average rating on Netflix is Hold, and the average price target is $225 per share.
On the day of Netflix, Inc. (NASDAQ:NFLX)’s report just hours before it was released, some analysts were also floating the word “bubble” in connection with the stock, pushing it lower before the results were even released. Nonetheless, clearly investors were unhappy with the company’s latest earnings even though they beat expectations. The disappointment in subscribership was clearly a big problem for the company.