The analysts are starting to get into a panic themselves... now we're seeing multiple upgrades of stocks that are up 20%, 30%, 40% in just a few weeks. I am reminded of Henry Blodget in a previous life.
- Jefferies analyst Youssef Squali this morning repeated his Buy rating on Netflix, while boosting his target on the stock to $175, from $128. Nonetheless, he trimmed his 2011 EPS forecast to $3.80, from $4.65, although he remains above the Street consensus at $3.73. The lower estimate reflects higher content costs, and higher postage fees, as well as lower DVD usage and slightly lower ARPU and subscriber growth. Nonetheless, he likes the stock now more than ever.
- Squali says that his new price target reflects his five-year discounted cash flow model.
- “We continue to find NFLX attractive as we believe that the company is best positioned to benefit from the industry’s transition to streaming from DVD usage,” he writes. “A growing digital content library and attractive pricing are likely to keep subscriber growth robust for several more years, in our view.”
And any of that reasoning above is new versus five weeks ago or $40 lower?
Priceline.com (PCLN), with no additional news in the past month, now gets an upgrade in the $330s... whereas it sat in the $280s post earnings spike 3-4 weeks ago. Where was the upgrade then? Now, after a $50 point run it's time to herd people in? Sure why not...
- Priceline shares are getting a lift this morning from Citigroup analyst Mark Mahaney, who repeated his Buy rating on the stock, while lifting his price target to $425, from $325. “Despite a 53% year-to-date price surge, we continue to view PCLN as one of the most attractive large cap Internet stocks and the best play off the secular growth in online travel,” he writes in a research note.
- The Citi analyst maintains his EPS estimates of $12.06 for this year, $14.92 for 2011 and $17.14 for 2012.