Netflix Stock Update By Sell-Side Firms

Despite mounting competitive threats from established and budding streaming rivals, the Street is considerably bullish on Netflix’s prospects.

Netflix Inc. stock has dropped nearly 17% since mid-August due to enormous pressure from streaming competitors. Regardless of shareholder concerns over the company’s leadership position, equity analysts at the Street’s remain bullish on the streaming giant’s stock.

The Service Video on Demand (SVOD) has now become a well-known household name in the United States, achieving substantial diffusion in the country. While, nearly two thirds of the households are not even subscribed to the service. Therefore, as the company increases in popularity, the overall addressable market might churn out number of subscriber’s for Netflix domestically.

Moreover, its global expansion strategy portend well for substantial growth in the long term. The streaming giant has plans to make its service available to an overall of 200 nations by the end of next year. Once the international rollout is done, the streaming giant might see substantial growth by the addition of subscribers in the global market. This will result in higher revenue growth.

The streaming giant recently disclosed its plan to introduce its service in four critical market in Asia, namely Hong Kong, South Korea, and Taiwan by the start of next year. Analysts are optimistic that these launches of new services will help the company in maintaining strong subscriber growth over the coming few years.

According to the data gathered by Bloomberg, out of 45 analysts having coverage to Netflix stock, over 50% are bullish of the company’s stock. 23 gave it a Buy, 16 recommend a Hold, while only six suggested a Sell rating to the stock. The average twelve month consensus price target stands at $117.38, reflecting 14.8% upside potential in the coming future.

Jeffery Wlodarczak, an analyst at Pivotal Research Group LLC holds a bullish target price on the stock. Mr. Wlodarczak suggests a rating of Buy on Netflix stock and expects stock to increase to $175 mark next year reflecting an upside potential of over 71% from the present price levels.

On the other hand, Michael Pachter of Wedbush Securities continues his bearish outlook on the stock. He recommends $40 price target with an Underperform rating.

However, majority of popular equity Investment Company’s hold a positive viewpoint for the company. Morgan Stanley assigns $127 of price target, JP Morgan suggests it at $127 while Credit Suisse and UBS place target price of $110 and $143, respectively.

The stock year-to-date performance also showed its growth and following appreciation in price. Netflix stock news reveals that the stock was down 1.46% to $102.24.