Categories Analysis, Technology

Netflix downgraded to HOLD, price target lowered

Only hours after investors sent Netflix (NFLX) shares tumbling 13% following its second-quarter earnings results, Deutsche Bank downgraded the stock to HOLD from BUY. The rating agency also lowered the price target on the company’s stock from $360 to $350. Meanwhile, analysts at Deutsche Bank maintained that the company’s long-term outlook has not changed much and that they continue to believe that the stock price can double in value to $700 by 2025.

“Despite continuing to like the story, we just don’t see much upside over the next 12 months at this valuation level,” Deutsche Bank said in a note to investors. Reaffirming its long-term belief in the stock, the firm pointed out that it is still trading at the levels seen two months back, despite the drastic drop on Monday.

The downgrade follows a slew of recent price target upgrades by various rating agencies including GBH Insights. A month back, the rating agency had boosted Netflix’s price target from $400 to $500 in a single go.   

RELATED: Netflix stock slides on disappointing subscriber growth in Q2

Netflix shares took a plunge on Monday after the streaming giant said it added fewer subscribers than expected. The company reported 5.15 million subscriber additions, missing its own target of 6.2 million by a wide margin. The subscriber growth miss became a dark spot on the company’s history of beating estimates and posting breakneck additions.

RELATED: Netflix price target raised to $500 from $400

Most Popular

V Earnings: Key quarterly highlights from Visa’s Q1 2023 financial results

Visa Inc. (NYSE: V) reported first quarter 2023 earnings results today. Net revenues grew 12% year-over-year to $7.9 billion. GAAP net income rose 6% to $4.2 billion while EPS grew

Earnings: Highlights of Intel’s (INTC) Q4 2022 financial results

Intel Corporation (NASDAQ: INTC) Thursday reported a decline in adjusted earnings and revenues for the fourth quarter. The semiconductor giant also provided guidance for the first quarter of 2023. Fourth-quarter

McCormick (MKC) expects to drive sales growth in 2023 through pricing actions and cost savings

Shares of McCormick & Company Inc. (NYSE: MKC) were down over 5% on Thursday after the company missed expectations on its fourth quarter 2022 results and provided a lower-than-expected earnings

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top