Amidst recent trading sessions, Netflix Inc (NFLX) has soared above the consensus 12-month target price of $655.24, commanding a price of $656.45/share. When a stock hits a target set by analysts, their response typically bifurcates: either they curtail the outlook on valuation or readjust the target price upwards. Analyst reactions could also be contingent on underlying business developments steering the stock price northward – suggesting that, if the company’s prospects appear promising, it might be apt to reconsider hiking the target price.
Netflix Inc boasts 34 different analyst targets within the Zacks coverage universe contributing to the aforementioned average – albeit a mere statistical mean. This average encompasses analysts with targets below the mean, with one eyeing $450.00, while at the opposite end of the spectrum, another forecasts a towering $800.00 target. Notably, the standard deviation stands at $77.889.
The rationale behind scrutinizing the average NFLX target price stems from the concept of leveraging “wisdom of crowds” – a collaborative effort amassing inputs from multiple individuals, rather than a solitary expert opinion. Thus, with Netflix surpassing the average target price of $655.24/share, investors are signaled to take a renewed deep dive into assessing the company to determine whether $655.24 is a mere pit stop en route to a loftier objective, or if the valuation has reached a point of stretching, warranting prudent profit-taking actions.
| Recent NFLX Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Month Ago | 3 Month Ago |
| Strong buy ratings: | 21 | 21 | 21 | 22 |
| Buy ratings: | 2 | 2 | 2 | 1 |
| Hold ratings: | 15 | 15 | 15 | 15 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 1 | 1 | 1 | 1 |
| Average rating: | 1.91 | 1.91 | 1.91 | 1.88 |
The average rating depicted in the aforementioned table ranges from 1 to 5, with 1 signifying Strong Buy and 5 denoting Strong Sell. This piece draws upon data from Zacks Investment Research via Quandl.com.
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