When an analyst says something good about a stock, that’s usually enough for a bit of a bump in share prices. When multiple analysts start piling in with praise, well, that usually seals the deal. However, despite new word from two different analysts, that wasn’t enough to give video streamer Netflix (NASDAQ:NFLX) much support, as shares were down fractionally in Monday afternoon’s trading.
The latest word came down from JPMorgan and TD Cowen analysts, both of whom set up bullish projections and hiked their price targets. TD Cowen pumped the target up from $600 per share to $725, while JPMorgan put a more sedate raise in Netflix’s future, sending shares up from $610 to $650.
Both of them noted that Netflix’s subscriber trends were looking very positive. Better yet, the password sharing crackdown is paying off in a big way, as new projections from JPMorgan suggest that around 62% of current Netflix “borrowers,” as they’re called, are likely to become paying customers before it’s all said and done.
Then the Layoffs Kicked In
But even as Netflix’s price target soared, its headcount plummeted. Just minutes ago, big news hit Deadline, revealing that Netflix is in the midst of a “major restructure” in its film department. It wasn’t clear at the time who, or how many, would be released and who, if any, would be coming in to take their places.
However, we know that this is the first major move for incoming film head Dan Lin, who took over the post from Scott Stuber, which we found out last month. The reorganization has been in progress ever since, and the features division will soon be split up by genre, which includes a special slot for science fiction.
Is Netflix Stock a Hold or Sell?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on NFLX stock based on 26 Buys, 13 Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After an 85.8% rally in its share price over the past year, the average NFLX price target of $598.98 per share implies 4.92% downside risk.
