One of the biggest banks on Wall Street just made a wild prediction about Netflix.
Goldman Sachs raised its 12-month price target for the streaming company by 17.5% to $235, the highest rating among analysts tracked by Bloomberg. Netflix is trading 1.74% higher after Goldman released the new target.
Netflix is scheduled to report earnings on Monday, and Goldman says the rest of Wall Street is underestimating the company’s potential.
“We believe consensus subscriber estimates for Netflix ahead of Monday’s earnings remain too low,” Goldman wrote in a note to clients. “While we are considerably above consensus (13.9 million net subscriber adds in the second half of 2017 vs. FactSet consensus of 10.8 million) and don’t expect management to guide to our forecast, we do believe management is likely to exceed those forecasts.”
Netflix announced a price increase for its subscribers earlier this month. The price hikes won’t affect many users until November, but they did send a number of analysts on Wall Street to raise their price targets and re-evaluate the company ahead of its earnings.
The average price target for the 45 analysts tracked by Bloomberg is currently $200.85, which is about 1% higher than Netflix’s current price of $198.96, …read more
Source:: Businessinsider – Finance