This morning, Netflix (NASDAQ:NFLX) announced that David Wells plans to step down from the CFO position but will stay on board until the company chooses his successor.
The streaming giant said that its search for a new CFO will include “both internal and external candidates.” Wells said in a statement that after exiting Netflix, he intends to focus more on philanthropy “but I’m not sure yet what that looks like.”
Monness’ top analyst Brian White believes that due to the tremendous success of Netflix over the years and its bright future ahead, the company will be able to attract a high-quality CFO.
White noted, “Given that Netflix recently missed 2Q:18 global streaming net additions and guided to a softer-than-expected 3Q:18 outlook, today’s news could be cast in a negative light. However, given the tremendous growth experienced under David Wells’ tenure as CFO of Netflix, we believe his plans to step down from the company should be viewed as more of a coincidence after a light quarter than something more sinister.”
Net net, White reiterates a Buy rating on Netflix stock, with a price target of $430, which implies an upside of 25% from current levels.
According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Brian White has a yearly average return of 18.2% and a 69% success rate. White has a -6.0% average return when recommending NFLX, and is ranked #72 out of 4847 analysts.
TipRanks showcases NFLX as one that has drawn optimism mixed with caution when it comes to consensus opinion among sell-side analysts. Out of 36 analysts polled in the last 3 months, 24 are bullish on Netflix stock, 10 remain sidelined, while 2 are bearish on the stock. With an upside potential of nearly 14%, the stock’s consensus target price stands at $390.29.
As of this writing, Netfilx shares are trading at $343.45, down $2.42 or -0.70%.