UBS analyst Eric Sheridan downgraded the Netflix Inc. NFLX stock rating,
Neutral since buying on Tuesday, writing that while the company appears ready to report a strong June quarter as it continued to benefit from COVID-19 locks, investors appear to have valued these benefits in Netflix stock. Shares fell 1.7% in premarket trading on Tuesday. “Unlike previous periods in recent months (with discussions focused on competition with Disney, balance sheet versus free cash flow generation, content / competition costs), investor fears appear to have disappeared and the current price of The stock reflects increasingly long-term trade pit dynamics including sustained user growth / revs and steady state margin expansion, “Sheridan said in its note to clients. He sees difficult subscriber comparisons for the company next year and wrote that “I would prefer to be constructive at levels when a mix of potential subscriber volatility, FCF dynamics and competition is better reflected in the stock price.” Sheridan kept him $ 535 price target unchanged. Netflix shares have recovered 26% in the past month as the S&P 500 SPX,
It has increased about 4%.
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