UPDATE: Bank of America Reiterates Netflix at Underperform; Momentum Eschewing Fundamental Risks
Bank of America maintained Netflix (NASDAQ: NFLX) with an Underperform rating and a $96 price target.
Bank of America said, "Since reporting Q4 results on Jan. 23d, Netflix stock has rallied 73%. Although results beat expectations, we believe the stock has moved too far too fast given limited fundamental change and our continued belief that: 1) the total domestic sub base will top at ~35mn; and 2) pricing power is not as strong as some suggest when the company is churning 5-6% of its sub base each month. We are reiterating our Underperform rating and $96 PO based on an SOP analysis."
Netflix closed at $177.89 on Monday.
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