Analysts & Momentum Investors Changing Tune on Netflix? (NFLX)

Netflix, Inc. (NASDAQ: NFLX) might be able to blame the market, or it might be able to blame a sentiment shift after its recently announced price shift.  Since Netflix has announced earlier this week that Monday, July 25, 2011 would be its earnings date, we wanted to know what analysts were thinking since the stock has run into some headwinds after a monumental rise.

On Wednesday came the news that JPMorgan started Netflix with a Outperform rating and $340 target.  While this is an obvious way-late call at an ongoing party, this was really new sector coverage on Internet and new media at the firm that included many other companies.

It looks like the firm that may have been a couple of days premature but right if the current reaction holds up is Merriman, which downgraded the stock last week to Neutral from Buy.  Last week came news that Bank of America reiterated a Buy rating with a $325 target.

This week came a report from Canaccord where the firm reiterated its Buy rating and $300 target.

The consensus price target on Netflix has risen but the target remains under the current share price at $252.00.  The 52-week range is $95.33 to $304.79 and now shares are down 3.3% at $288.88 in mid-afternoon trading.  A 5% drop from the highs might not scare too many investors, but that is something that the momentum investors might consider with much more caution.  When momentum stocks are hot, but when they are not they really are not.

JON C. OGG