Netflix Inc. has a had a very rough season in the last one week as the stock rose and fall to the dismay of investors and traders. On August 5, the shares of Netflix made a new 52-week high of $129.29 before it started channelling over the following two weeks.
However, the stock recorded a steep decline yesterday when it fell to an intra-day low of $85.50 before it closed above $96. It would appear that Netflix was one of the worst-hit tech stocks and that Wall Street’s love for the firm is waning
Despite the rough ride that could give investors an heart attack, analysts are confident about the prospects of Netflix and they are raising their price targets on the stock. A number of analysts have maintained their bullish views on Netflix but the most interesting thing is the recent spate of increases in targets for the stock.
Price target increase
Leading the bullish charge for Netflix are the analysts at RBC Capital Markets. In a report that the analysts released to clients and investors today, they maintained their “Outperform” rating on the stock and they have raised their price target to $140 to mark a 30.65% upside from today’s opening price of $107.15.
Analysts at S&P Equity Research are also bullish about the prospects of Netflix. They have maintained their “Buy” rating on the stock and they have a $128 price target. The analysts at Robert W. Baird also thinks that Netflix is a “Buy”.
Analysts at VETR increased their bullishness on Netflix by upgrading the stock from a “Hold” rating to a “Buy” rating. They have projected that the stock will rise to $122.78. In addition, analysts at Pacific Crest maintained their Overweight rating on the stock.
Why Institutional Investors are Netflix Bulls
Netflix has institutional ownership of 88%, which suggests that big Wall Street firms who usually seek out stability in stocks are confident about the prospects of the firm. In the first quarter, Technology Crossover Management held 1.21 million shares of Netflix to account for 39.53% of its U.S. stock exposure. CTC LLC. holds 37.184 shares of the stock to account for 21.12% of its U.S. long stock exposure.
These key investors confirm the bullish analyst view about the prospects of Netflix. Just yesterday, analysts at Oppenheimer said that Netflix is a great buy in a awful market.