Why Netflix Stock Jumped as Much as 5.1% Today
Netflix (NASDAQ: NFLX) had another good day on Wednesday, extending a bullish span that started with the third-quarter report on Tuesday, October 18. Another analyst joined the Greek chorus of impressed market watchers, driving Netflix stock as much as 5.1% higher by 11:40 a.m. ET. The gain had cooled down to 2.6% by the closing bell.
Pivotal Research analyst Jeffrey Wlodarczak lifted his Netflix rating two full steps this morning, from a "sell" to a "buy." Pivotal's price target for the stock nearly doubled from $200 to $375 per share. The old targets were among the lowest analyst ratings for Netflix, but the updated view currently carries the highest price target of any analyst.
Wlodarczak conceded that his former analysis was too conservative. He expects the ad-supported subscription plan for $7 per month to boost Netflix's subscriber numbers significantly, with limited cannibalization of higher-priced viewing plans. The analyst also noted that streaming rivals such as Walt Disney (NYSE: DIS) and Apple (NASDAQ: AAPL) are raising their monthly fees for video-streaming services, which arguably gives Netflix a more comfortable market position. In a note to clients, the Pivotal analyst said:
Source Fool.com
