Netflix: Wedbush Securities raises target price
(CercleFinance.com) - Wedbush Securities announced on Tuesday that it is raising its target price for the Netflix stock from 198 dollars to 220 dollars, two days before the US streaming giant's second quarter results, due on Thursday evening.
In a research note, the broker explains that it expects good figures, driven both by lockdown measures and a solid catalogue of new content.
However, against the positive impact of lockdown measures, it expects that expenditure on content uses up a big share of cash for years to come. In addition, competition in terms of content and subscriber numbers could limit the group's ability to increase prices charged.
In light of these points, Wedbush reiterates its "underperform" rating on the stock - the market seems to agree - it is currently down 3.5% in Tuesday morning trading on Wall Street.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
In a research note, the broker explains that it expects good figures, driven both by lockdown measures and a solid catalogue of new content.
However, against the positive impact of lockdown measures, it expects that expenditure on content uses up a big share of cash for years to come. In addition, competition in terms of content and subscriber numbers could limit the group's ability to increase prices charged.
In light of these points, Wedbush reiterates its "underperform" rating on the stock - the market seems to agree - it is currently down 3.5% in Tuesday morning trading on Wall Street.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.