Analysts rate Netflix Inc. (NFLX:NSD) with a Buy, $582.50 Target

STA Research
by: STA Research
Netflix Inc. stock forecast

Analysts rate Netflix Inc. stock with a consensus Buy rating and a 12-month average target price of $582.65 per share.

Stifel Nicolaus Research maintained Netflix Inc.  with a Buy rating and lowered the target price to $460 from $500.

Based on the Netflix Inc. stock forecasts from 34 analysts, the average analyst target price for Netflix Inc. is USD 582.65 over the next 12 months. Netflix Inc.’s average analyst rating is Buy. Stock Target Advisor’s own stock analysis of Netflix Inc. is Slightly Bullish, which is based on 9 positive signals and 5 negative signals. At the last closing, Netflix Inc.’s stock price was USD 362.15. Netflix Inc.’s stock price has changed by -12.44% over the past week, +11.89% over the past month and -34.70% over the last year.

Netflix, Inc. provides entertainment services. It offers TV series, documentaries, feature films, and mobile games across various genres and languages. Netflix, Inc. was incorporated in 1997 and is headquartered in Los Gatos, California.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk-adjusted returns

Netflix Inc. stock has performed well, on a risk-adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.

Superior return on equity

The company management has delivered a better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered a better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered a better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth

Netflix Inc. stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

Superior Revenue Growth

This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

What we don’t like:

High volatility

The total returns for this company are volatile and above the median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to earnings

Netflix Inc. stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Overpriced on a cash flow basis

Netflix Inc. stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

Highly leveraged

Compared to its sector peers on debt to equity, the company is in the bottom half and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

 

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