Netflix valuation to enter ‘danger zone’, warn analysts, despite being ‘overweight’; Target price hiked to $1000 | Stock Market News
Source: Live Mint
Netflix stock may be entering “the valuation danger zone,” but analysts at KeyBanc reiterated their bullish position and opted to raise their price target on the shares.
Shares of Netflix have advanced 0.4% to $914.04 in early trading Tuesday after analysts led by Justin Patterson maintained an Overweight rating while increasing their price target to $1000 from $785. The new price target is 9.4% above current levels.
It wasn’t all good news for investors, though, as the analysts increased target came with a two-part warning. The first is on the narrative, which has Netflix as the big winner of the cable-streaming TV wars. The second is valuation. The firm noted that Netflix shares are trading at nine times enterprise value to sales, which has historically signaled that the streamer is nearing a peak valuation.
