It goes without saying that Netflix (NFLX) stock has been one of the big winners this year, surging from a 52-wk low of $159.00 a share to a high of $458.00. The name however, fell sharply on Friday as it shed almost 18 points, prompting it to slip into bear market territory. Through Friday’s close, the stock was down 25.7% since March 7.
While some profit-taking is to be expected on one of Wall Street’s best momentum plays, it’s not immediately clear what’s behind the stock’s recent reversal, which is looking more convincingly bearish.
But on such indicators, Oppenheimer is newly optimistic on the value of the streaming video provider. The firm upgraded its rating on Netflix shares this morning to “Outperform” with a $419 price target citing the recent pullback in shares. Oppenheimer also said the ticker should continue to climb and pointed out “an attractive risk/reward profile at current share levels”.
Netflix shares are up about $4 today in pre-market hours, trading at $341 as of 8:43AM EDT.