Amidst recent trading, the stock price of Netflix Inc (Symbol: NFLX) has soared past the average analyst target of $655.24, selling at $656.45/share. When a stock hits the target set by an analyst, the analyst typically has two choices: either downgrade the stock due to valuation concerns or revise the target upwards. The analyst’s reaction may hinge on recent business developments driving the stock price higher.
Netflix Inc boasts 34 different analyst targets within the Zacks coverage universe, contributing to the average target price. However, it is crucial to recognize that the average is merely a statistical figure. Some analysts set lower targets, with one predicting a price of $450.00, while another foresees a target as high as $800.00. The standard deviation stands at $77.889.
The rationale behind examining the average NFLX price target is to tap into the “wisdom of crowds” phenomenon. This approach amalgamates the inputs of various experts rather than relying solely on one individual’s opinion. Therefore, with NFLX surpassing the average target price of $655.24/share, investors are prompted to reevaluate the company. They must question whether $655.24 is merely a stepping stone towards a higher target or if the valuation has become overstretched, signaling the need to consider profit-taking. Below is a breakdown of the analysts’ current sentiments toward Netflix Inc:
| Recent NFLX Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Month Ago | 3 Month Ago |
| Strong buy ratings: | 21 | 21 | 21 | 22 |
| Buy ratings: | 2 | 2 | 2 | 1 |
| Hold ratings: | 15 | 15 | 15 | 15 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 1 | 1 | 1 | 1 |
| Average rating: | 1.91 | 1.91 | 1.91 | 1.88 |
The average rating seen in the table is on a scale of 1 to 5, with 1 indicating Strong Buy and 5 denoting Strong Sell. This analysis incorporates data from Zacks Investment Research provided via Quandl.com.
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