Netflix Bandwagon Fully Loaded Ahead Of Q1 Earnings
Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.
Netflix, Inc. (NASDAQ: NFLX) shares were trading higher by $22.00 (5 percent) at $476.57 in Monday's session. One of the catalysts for the rally is an upgrade from UBS from Neutral to Buy, while raising their price target all the way from $370 to $565.
This marks the second day in a row the issue has been upgraded by the Street. On Friday, Citigroup raised the issue from Neutral to Buy and raised its price target from $409 to $525. On Thursday, BMO Capital maintained its Market Perform rating but bumped its price target from $400 to $450.
Also on Friday, Netflix proposed a huge increase in the number of its authorized shares, "promising a stock split to sweeten the pot. In a proxy statement filed late Friday afternoon, the company proposed boosting authorized shares to 5 billion from 170 million."
As a result, Netflix has leaped from its April 8 close ($441.36) to nearly $480 over this period of time. That puts the issue within striking distance of its all-time high, which was made on February 26 ($486.50).
All of the activity is taking place just ahead of the results for Q1 earnings that will be announced after Wednesday's close.
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