Netflix Rises on Analyst’s Comments

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By Trey Thoelcke Published
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Netflix Inc. (NASDAQ: NFLX) surged this morning in the wake of Citigroup analyst Mark Mahaney late Tuesday reiterating a Buy rating.

Reasons for the rating included “a highly reasonable valuation, a generally positive execution track record, and the still early market opportunity for Internet video streaming.”

According to a Citigroup proprietary survey, for the first time since last summer, the number of consumers who are very or extremely satisfied with the company has begun to increase. Furthermore, the number of respondents who listed Netflix as a top destination also rose.

Netflix is scheduled to post third quarter results on October 23. The consensus forecast calls for a steep decline in earnings per share, compared to a year ago, but an increase in revenue of about 10%.

Mahaney maintains a Buy rating on the shares with a price target of $120.

Shares traded up more than 7%, as high as $60.84, in morning trading. The 52-week range is $52.81 to $133.43. The mean price target is $73.96.

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About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.

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