Cantor’s top-ranked analyst Youssef Squali weighed in today with his forecast on streaming leader Netflix, Inc. (NASDAQ:NFLX), as the company will report second-quarter results after the market close on Monday, July 18. Netflix shares are currently trading at $98.47, up $0.45 or 0.46%.
The analyst stated, “We expect Netflix to report generally in-line 2Q:16 results with solid underlying subscriber growth trends despite tougher Y/Y comps internationally, and the on-going un-grandfathering of the $7.99 monthly plan. While it was prudent for management to temper 2Q expectations on the 1Q:16 call, given the issues noted above, we believe the massive global launch in January and another strong slate of originals in 2Q:16 should offset these drags. That said, FX headwinds and a maturing US market are likely to keep guidance in check. We remain constructive on NFLX long-term, given the company’s leadership position on OTT, scale, unmatched value proposition and singular focus.”
Squali reiterated a Buy rating on shares of Netflix, with a price target of $130, which represents a potential upside of 32% from where the stock is currently trading.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Youssef Squali has a yearly average return of 15.3% and a 70% success rate. Squali has a 47.2% average return when recommending NFLX, and is ranked #5 out of 4060 analysts.
Out of the 41 analysts polled by TipRanks, 25 rate Netflix stock a Buy, 12 rate the stock a Hold and 4 recommend Sell. With a return potential of 41.7%, the stock’s consensus target price stands at $139.08.