NFLX Downgraded by Hudson Ahead of Netflix Earnings

by Carla Lake | October 16, 2013 2:13 pm

[1]Netflix (NFLX[2]) analysts are starting to pile up their calls ahead of the Netflix earnings report, due out Monday, Oct. 21.

Hudson Square Research is the most recent to share an estimate, downgrading NFLX stock from “buy” to “hold” based on valuation, according to The Fly on the Wall[3] (paywall). With Netflix stock up nearly 250% YTD, ballooning its P/E to a whopping 400 … well, there might be something to that call.

However, other analyst ratings for Netflix stock this week were more bullish:

• Both UBS and JPMorgan Chase boosted the price target for NFLX from $290 to $340.
• Brean Capital reiterated a “positive” rating.
• Hanson initiated coverage with a “neutral” rating.

These new ratings came right as Netflix announced a new original series in the works — a psychological thriller[4] from the creators of Damages. Netflix’s original content is seen as a key strategy for retaining existing customers[5], while expansion to overseas and domestic rural markets is considered key to growth. NFLX also apparently is looking at partnerships with traditional cable companies[6].

Investors will get to see the results of earlier-year initiatives — and get an idea about whether Netflix stock estimates are pointed in the right direction — after the Netflix earnings report Monday evening.

As of this writing, Carla Lake did not hold a position in any of the aforementioned securities.

Source URL: https://investorplace.com/2013/10/nflx-downgrade-netflix-earnings/

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