Shares of Netflix (NASDAQ:NFLX) fell nearly 5 points to $302 in early trading Monday even though one Wall Street brokerage upgraded the streaming service’stock two notches to ‘Buy’ from ‘Underperform’ after its recent 60 plus point pullback. Buckingham Research analysts led by Matthew Harrigan said that while there were previously cautious on the name’s “elevated” price-per-share, they still believe the ticker is a top-notch option.
“We have always viewed Netflix as the continued top streaming category winner,” Harrigan wrote in a note to clients Monday. We are “increasing our price target to $406 from $349, providing 31 percent upside, with the stock’s 27 percent decline from its July 12-month high being the primary upgrade catalyst.”
Netflix Stock Action
Netflix hit an all-time high of $423.21 a share on June 21. With today’s drop, the 27% pullback in Netflix shares since hitting a record high, puts the name 9% higher year-to-date.
At time of writing the stock is down over 1% to $305.95. A move below the psychological level of $300 per share would confirm a major topping process is underway.
Netflix shares are up 49% year-over-year through midday trading Monday versus the S&P 500’s 5.1% return.
Of the 33 brokerages covering the stock, 19 have ‘Strong Buy’ ratings, 3 have ‘Strong’ ratings and 9 have ‘Hold‘ ratings. No brokerage rates the name ‘Underperform’ while 2 rate it ‘Sell’.
As of writing, 4 million shares of Netflix have exchanged hands, compared with its average daily volume of 11.7 million shares.
Reference: CNBC
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