Netflix to Surge Another 12%: Piper Jaffray – TheTradersWire

Netflix to Surge Another 12%: Piper Jaffray


Netflix to Surge Another 12%: Piper Jaffray

By Shoshanna Delventhal | January 4, 2018 — 4:20 PM EST

As Netflix Inc. (NFLX) starts out 2018 strong, with shares up 7% this week, one analyst on the Street indicates that the media stock is poised to rally another 12% within the next 12 months. (See also: Netflix on Track for Q4 Beat: Piper Jaffray.)

Looking at shares of the on-demand video streaming platform from a technical perspective, Piper Jaffray’s Chief Market Technician Craig Johnson pointed to bullish momentum in the chart. “We’re still very much in an uptrend. We’ve corrected right back to the uptrend support line. It looks, to us … purely based upon the charts … we could see a measured move up to $230 on Netflix,” said Johnson in an interview with CNBC’s “Trading Nation.”

Trading down 0.2% on Thursday afternoon at $204.65 per share, a $230 price target would reflect an approximate 12.4% gain from current levels. Last year marked a breakthrough year for the popular direct-to-consumer platform, as a series of positive earnings surprises helped boost the stock 55% versus the S&P 500’s 19% gain over the same period.

Starting Off 2018 With Bullish Notes

Also this week, analysts at Macquarie lifted their rating on NFLX shares to outperform from neutral as “part of a broad realignment of views on media, where we prefer companies with subscription over ad-driven content, and scaled distribution with an international presence.” Analyst Tim Nollen also lifted his price target on NFLX, applauding the company for “changing the way people watch TV.”

In a separate note, the Macquarie analyst upgraded shares of the Walt Disney Co. (DIS), which earlier this year announced plans to cut ties with Netflix in efforts to launch its own direct-to-consumer streaming platform.

Preferring Disney over Netflix, Washington Crossing Advisors portfolio manager Chad Morganlander argued on the CNBC segment that while the former is “more of a momentum name,” the latter is a “quality company with quality assets.” (See also: Netflix Raising Another $1.6B in Debt to Pay for Content.)

Published at Thu, 04 Jan 2018 21:20:00 +0000

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