Analysts Offer Insights on Services Companies: Nutrisystem Inc (NTRI), Netflix (NFLX) and ARC Document Solutions (ARC)


Analysts have been eager to weigh in on the Services sector with new ratings on Nutrisystem Inc (NASDAQ:NTRI), Netflix (NASDAQ:NFLX) and ARC Document Solutions (NYSE:ARC).

Nutrisystem Inc (NTRI)

In a report released yesterday, Kara Anderson from B.Riley FBR assigned a Buy rating to Nutrisystem Inc, with a price target of $52. The company’s shares opened today at $39.65.

Anderson said:

“We think the DNA test could prove to be a great opportunity to attract new and prior Nutrisystem customers (nearly a third of revenue is already from reactivation) due to its newness and ultimate ability to provide a more customized experience. Further, we find the product launch timely and on trend with the growing consumer demand for commercial genetic testing services. Nutrisystem’s new ad featuring DNA Body Blueprint can be viewed here. Analyst certification and important disclosures can be found on pages 3 – 6 of this report. This document represents an abbreviated discussion of the subject issuer and should not be used as the sole basis for an investment decision.”

According to TipRanks.com, Anderson is a 4-star analyst with an average return of 12.5% and a 54.1% success rate. Anderson covers the Services sector, focusing on stocks such as Weight Watchers International, Spark Networks Plc, and TheStreet.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Nutrisystem Inc with a $46.50 average price target, implying a 17.3% upside from current levels. In a report released today, D.A. Davidson also maintained a Buy rating on the stock with a $45 price target.

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Netflix (NFLX)

In a report released today, Barton Crockett from B.Riley FBR assigned a Hold rating to Netflix, with a price target of $313. The company’s shares opened today at $346.95.

Crockett noted:

“We flagged in a research note on 7/12 that our checks suggest search interest for new Netflix (NFLX) shows in 2Q18 was at about the same level as last year, a slowdown from the geometric step ups of earlier quarters. This slowdown, based on our checks, seemed to be largely tough comps and tied to the strong interest last year in 13 Reasons Why. This read made us cautious about high-expectations on Netflix into the earnings report. Consistent with our caution, Netflix reported fewer sub additions than anticipated. The key question is whether this is an outlier outcome or the beginning of a trend of peak content and peak sub growth. For now, the risk of that is enough at this valuation to keep us at Neutral with an unchanged $313 PT.”

According to TipRanks.com, Crockett is a 4-star analyst with an average return of 6.4% and a 59.9% success rate. Crockett covers the Services sector, focusing on stocks such as Liberty Media Corporation Series A Liberty SiriusXM Common Stock, Qurate Retail Group Inc, and Sinclair Broadcast.

Currently, the analyst consensus on Netflix is a Moderate Buy with an average price target of $392.41, which is a 13.1% upside from current levels. In a report issued on July 11, UBS also downgraded the stock to Hold with a $425 price target.

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ARC Document Solutions (ARC)

B.Riley FBR analyst Josh Nichols assigned a Hold rating to ARC Document Solutions today and set a price target of $2.75. The company’s shares opened today at $2.03, close to its 52-week low of $1.62.

Nichols wrote:

“We view the news as encouraging and evidence that management is executing on its strategic objectives of returning to sustainable top-line growth, securing new market share, protecting print sales from existing customers, as well as investing in business lines that demonstrate consistent growth potential. In light of the positive preannouncement, we will adjust our projections in our upcoming 2Q18 earnings preview.”

According to TipRanks.com, Nichols is a 5-star analyst with an average return of 33.1% and a 51.8% success rate. Nichols covers the Consumer Goods sector, focusing on stocks such as Adesto Technologies Corp, Pointer Telocation Ltd, and Horizon Global.

The word on The Street in general, suggests a Hold analyst consensus rating for ARC Document Solutions.

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