Netflix Bounces after RBC Raises Price Target, But…

04:18 09/06/2018

While most of the tech-heavy NASDAQ took a hit, Netflix NFLX  managed to buck the red tape on a bullish call. Days after falling from nearly $380 to a low of $335, analysts at RBC Capital Markets said investors ought to buy the recent dip because of its dominant position in the streaming video market. The firm raised its price target to $440 from $360, which is about $100 higher from current prices. RBC also reiterated an outperform rating for the stock. "We believe these results largely confirm Netflix's strong Value Prop and Competitive Position," they noted, as quoted by CNBC. "We also view Netflix as one of the best derivatives off the strong growth in online video viewing and in Internet connected devices (tablets, smartphones, Internet TVs), with our proprietary survey data tracking significantly improved customer satisfaction levels. We believe that Netflix has achieved a level of sustainable scale, growth, and profitability that isn't currently reflected in its stock price.” While the new rating put a floor under the stock, it’s essential that traders wait for trend change confirmation. The last thing you want to do is buy into a false break higher. Should this be a temporary floor in a crumbling index, it could fall further. In short, it’s best to wait to see where it heads from here. If it breaks lower, we would look for NFLX support just under $320 a share.

This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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