Netflix (NFLX) Receives a Hold from Rosenblatt Securities

By Carrie Williams

Rosenblatt Securities analyst Mark Zgutowicz maintained a Hold rating on Netflix (NFLXResearch Report) today and set a price target of $370. The company’s shares closed yesterday at $379.93.

Zgutowicz commented:

“We increase our price target to $370 driven by a higher implied target multiple and slightly higher international estimates. Pivoting to churn reduction content strategy as domestic scale reached and content competition intensifies. The primary driver of gross adds to SVOD services is first run, high quality original series. NFLX has been successful in this category, most recently by reporting 41M HH watching Stranger Things season 3 in the first five days of launch. However, binge watching drives the need to create even more content. In order to fill the time between original series NFLX has increasingly focused on individual originals like comedy specials, documentaries and movies.”

According to TipRanks.com, Zgutowicz is a 5-star analyst with an average return of 23.4% and a 72.5% success rate. Zgutowicz covers the Technology sector, focusing on stocks such as Spotify Technology SA, Trade Desk Inc, and Pinterest Inc.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for Netflix with a $422.32 average price target, an 11.2% upside from current levels. In a report issued on June 26, Robert W. Baird also reiterated a Hold rating on the stock with a $370 price target.

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Netflix’s market cap is currently $164.5B and has a P/E ratio of 135.69. The company has a Price to Book ratio of 29.13.

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