Wednesday Morning’s Market Insights: Netflix, Inc. (NFLX), Seadrill Ltd (SDRL), Synthetic Biologics Inc (SYN)
Netflix, Inc. (NASDAQ:NFLX) is up nearly 4% in pre-market trading up to $112 after the company released Q4 earnings yesterday evening. The company posted revenue of $1.82 billion and EPS of $0.10, compared to analysts’ estimates of $1.83 billion and $0.02, respectively. Analysts were pleased to see that Netflix added 5.59 million new subscribers in the quarter, as decelerating subscriber growth had been a concern. This figure includes over 4 million new subscribers outside the U.S., surpassing analysts’ expectations of 3.5 million. Following the earnings release, Doug Anmuth of J.P. Morgan assigned a Buy rating to the company with a $141 price target. As of this writing, 11 analysts polled by TipRanks are bullish on Netflix, 1 is bearish, and 8 remain neutral. The average 12-month price target between these 18 analysts is $124.44, marking a 15% potential upside from where shares last closed.
Seadrill Ltd (NYSE:SDRL) is down more than 11% in pre-market trading to $1.88 after an analyst at Bank of America/Merrill Lynch downgraded the company from Neutral to Underperform. The downgrade occurred after U.S. crude oil prices hit a new 12-year low of $28. The International Energy Agency warns that the oil crisis could get worse before it gets better due to a current supply glut coupled with Iran’s restored ability to return to the market. According to analysts polled by TipRanks in the last 3 months, 1 analyst is neutral on Seadrill while 3 remain bearish. The average 12-month price target for the stock is $7, marking a 230% potential upside from current levels.
Synthetic Biologics Inc (NYSEMKT:SYN) is up 13% in pre-market trading after yesterday’s news of positive topline data for its phase two trials of Syn-010 used to treat irritable bowel syndrome. The drug met the study’s primary endpoints which were the reduction of methane production in the gut, and its secondary endpoints which were reduced abdominal pain and bloating and improved stool frequency in patients. CEO Jeffery Riley stated, “Meeting the study endpoints and demonstrating positive clinical outcomes in this Phase 2 trial of SYN-010 bring us closer to offering a therapeutic to the millions of people who suffer from IBS-C.” The company is now planning the Phase 3 program for the drug.