Netflix (NASDAQ: NFLX) shares edged lower Thursday after the streaming giant was downgraded to Accumulate from Buy at Phillip Securities.
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Even so, analyst Jonathan Woo also raised the firm's price target on the stock to $388 from $346, telling investors that the only reason for the downgrade is due to the recent rally in the stock.
Despite its 0.84% decline Thursday, Netflix shares are up 22% in 2023 and over 63% in the last six months.
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Woo acknowledged that Netflix continues to grow its subscriber base, adding that its “Basic with ads” plan shows early signs of promise.
Last week, Argus analyst Joseph Bonner raised the firm's price target on Netflix to $390 from $340, keeping a Buy rating on the stock.
Bonner told investors in a note that the company's net paid subscriber data in the fourth quarter “nicely outperformed” its previous guidance as management continues to concentrate on reigniting revenue growth.
The analyst added that while Netflix is experiencing a difficult period due to intense competition and economic headwinds, it is still the “anchor tenant” for consumers in video streaming.
Overall, out of 35 analysts covering Netflix, 17 have a Buy rating on the stock, with 15 at Hold and three at Sell, according to Tipranks. The average price target is $348.63, representing a potential 4% downside from current levels.
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