Another Analyst Downgrade For Netflix
Netflix (NFLX) shares dropped 1.70% Friday amidst news of another analyst downgrade.
Morgan Stanley Analyst Scott Devitt downgraded the stock to "equal weight" from "overweight." Devitt feels that shares are fully valued and has a $68 price target on the stock. Netflix closed the day at $69.98 per share.
This is the fourth downgrade for Netflix in recent weeks. Bank of America, Susquehanna, and Kaufman downgraded Netflix last month citing valuation concerns for the nation's leading movie rental company.
Analysts are still positive about Netflix's core businesses but feel that shares are pricey at almost $70 per share. Netflix currently trades at 28 times 2010 earnings estimates of $2.50 per share. Netflix (NFLX) trades at 22 times 2011's projected earnings of $3.10.
Despite all of the analyst downgrades, Netflix's stock price has held up pretty well. The stock is just 2.2% below its 52 week high.
