Abhoy Sarkar's Avatar
published in Blogs
Jul 10, 2020

Netflix (NFLX, $542.12) gets price target boost from Goldman Sachs, on subscriber addition expectation

Netflix got  price target raise from Goldman Sachs analysts, who believe that the streaming behemoth’s second-quarter results will come in "well above guidance" .

Goldman Sachs analysts hiked their price target on Netflix shares from $540 to a Wall Street high $670. The analyst affirmed buy rating on the stock.

According to the Goldman analysts expectations, Netflix will report an addition of at least a net 12.5 million subscribers (vs. consensus estimates of  8.2 million) in the quarter. "While management is likely to guide the third quarter conservatively given the first-half outperformance and the massive uncertainty in the current environment, we believe consensus estimates for the second half and beyond remain too low," Goldman analyst Heath Terry wrote.

For the full year, Goldman projects Netflix to report paid subscriber net additions of 45.6 million (vs. the FactSet consensus estimate of 35.8 million).

According to Tickeron, NFLX's price moved above its 50-day Moving Average on June 15, 2020

This price move indicates a change in the trend, and may be a buy signal for investors. In 30 of 38 cases where NFLX's price crossed above its 50-day Moving Average, its price rose further within the subsequent month. The odds of a continued Uptrend are 79%.

Current price $545.36 is above $441.95 the highest resistance line found by A.I. Throughout the month of 06/08/20 - 07/09/20, the price experienced a +21% Uptrend. During the week of 07/01/20 - 07/09/20, the stock enjoyed a +5% Uptrend growth.

Technical Analysis (Indicators)

Bullish Trend Analysis

The Momentum Indicator exceeded the 0 level on June 16, 2020. Traders may consider buying the ticker or exploring call options. In 63 of 85 cases where the ticker's Momentum Indicator exceeded 0, its price rose further within the subsequent month. The odds of a continued Uptrend are 74%.

The Moving Average Convergence Divergence (MACD) just turned positive. Considering data from situations where NFLX's MACD histogram became positive, in 35 of 46 cases, the price rose further within the following month. The odds of a continued Uptrend are 76%.

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where NFLX advanced for three days, in 214 of 292 cases, the price rose further within the following month. The odds of a continued Uptrend are 73%.

The Aroon Indicator entered an Uptrend today. In 232 of 300 similar cases where NFLX Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 77%.

Bearish Trend Analysis

The RSI Indicator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.

The Stochastic Indicator demonstrated that the ticker has stayed in the overbought zone for 4 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.

The higher Bollinger Band was broken -- a price fall is expected as the ticker heads toward the middle band, which invites the trader to consider selling or shorting the ticker, or exploring put options. In 32 of 51 cases where NFLX's price broke its higher Bollinger Band, its price dropped further during the following month. The odds of a continued Downtrend are 63%.

Fundamental Analysis (Ratings)

Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 78%. During the last month, the daily ratio of advancing to declining volumes was 2.13 to 1.

The Tickeron Price Growth Rating for this company is 7 (best 1 - 100 worst), indicating outstanding price growth. NFLX’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron Profit vs. Risk Rating rating for this company is 8 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 73, placing this stock better than average.

The Tickeron SMR rating for this company is 42 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron PE Growth Rating for this company is 75 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron Valuation Rating of 93 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: NFLX's P/B Ratio (26.55) is very high in comparison to the industry average of (4.47). P/E Ratio (102.77) is within average values for comparable stocks, (81.45). Projected Growth (PEG Ratio) (1.01) is also within normal values, averaging (0.89). Dividend Yield (0.00) settles around the average of (0.40) among similar stocks. P/S Ratio (7.94) is also within normal values, averaging (143.67).

 

Related Tickers: NFLX
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John Jacques's Avatar
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