After losing nearly a quarter of its value, Netflix stock is too attractive to pass up, a Wall Street analyst said Friday.
Citigroup analyst Mark May upgraded Netflix (NFLX) to buy from neutral and reiterated a price target of 375. He called it an “opportunistic upgrade.”
Netflix stock jumped 4.2%, to near 334.50, in midday trading on the stock market today. The stock fell below its 200-day moving average on Thursday. It remains below its 50-day moving average following the recent tech rout.
After hitting a record high of 423.21 on June 21, Netflix stock fell 24% through Thursday’s close.
Earnings Report Next Netflix Catalyst
The next potential catalyst for the stock is the company’s third-quarter earnings report, scheduled for release after the market close Tuesday.
The internet television network forecast that it added 5 million new subscribers in the September quarter, which would bring its total to 135.14 million worldwide. Netflix guided to 650,000 new subscribers in the U.S. and 4.35 million in international markets.
Wall Street is modeling Netflix to earn 68 cents a share on sales of $4 billion in the September quarter. In the year-earlier quarter, Netflix earned 29 cents a share on sales of $2.98 billion.
The key driver for Netflix stock in the near term will be “the company’s ability to hit or beat its next quarter subscriber guide,” B. Riley FBR analyst Barton Crockett said in a report Friday. He reiterated his neutral rating on the stock with a price target of 313.