Netflix gets vote of confidence from Goldman ahead of Q3 results
Bank predicts ‘less than sparkling’ numbers but shares rally
Netflix has received a vote of confidence from investment bank Goldman Sachs ahead of the video-streaming platform’s third-quarter results, due next week, Marketwatch reports.
Heath Terry, a Goldman’s analyst, said that the numbers might not be sparkling, but emphasised the investment bank’s long-term confidence in the media giant, maker of hit shows such as Orange Is the New Black.
However, Terry cut his earnings per share estimate from $3.24 to $3.17 and his price target $420 to $360, below the Wall Street average.
He maintained his buy rating, saying Netflix had a strong slate of content lined up for the fourth-quarter as well as a potentially more stable pricing environment.
Netflix’s share price has fallen 28.8% in the past three months as major media companies, such as Disney, launch their own streaming platforms. Shares fell as low as $264.6250 yesterday but recovered to $276.0200, up 3.20% since the start of trading.