A pair of Netflix Inc (NASDAQ:NFLX) analysts are out with positive updates ahead of the entertainment giant’s earnings report next week. The calls focused on valuation, with one analyst being notably more optimistic than the other.
What To Know: Goldman Sachs analyst Eric Sheridan maintained a neutral rating on Netflix on Monday and raised the price target from $659 to $705 ahead of earnings next week.
Sheridan remains positive on Netflix, but continued stock outperformance has raised valuation questions. Netflix has significantly outperformed the S&P 500 over the past year, up 87% versus 27% for the broader market, he said in a new note to clients.
The Goldman analyst noted that much of the outperformance is warranted given that the company remains the market leader in streaming, has made further progress on its ad-supported tier and has seen competition continue to moderate as other streaming players focus on profits over growth.
Sheridan highlighted recent ...
