Talk About Lousy Timing for a Netflix Analyst Price Target Downgrade

1 month ago 17

Rick Munarriz, The Motley Fool

Mon, July 13, 2026 astatine 12:07 PM CDT 3 min read

There is ne'er a bully clip for a banal to beryllium connected the losing extremity of an expert downgrade oregon a sinking terms people adjustment, but the worst imaginable script has to beryllium conscionable earlier the publically traded institution steps up with caller financials. This happened connected Monday, with Oppenheimer slashing its terms people connected Netflix (NASDAQ: NFLX) from $120 to $100. The starring premium streaming level reports its second-quarter results connected Thursday afternoon.

Wall Street pros aren't perfect. They are human, and not conscionable due to the fact that they person a inclination to purpose little connected net projections much often than not. However, knocking down a terms people alternatively of waiting for the existent numbers to travel retired 3 days aboriginal is intentional. Oppenheimer didn't privation to participate net play with a higher terms target. It mightiness not beryllium a large deal, but let's zoom successful for a person look.

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It's worthy noting that Oppenheimer's elder net analyst, Jason Helfstein, besides lowered Netflix's terms people 3 months ago. He slashed his terms extremity connected the shares from $135 to $120 connected April 17, the time aft the platform's poorly received first-quarter release. It's worthy noting that the accommodation occurred after the April report. The terms people tweak is coming up of the show study this clip around.

Oppenheimer's April downward revision was attributed, successful part, to the steadfast conceding that it had been excessively ambitious successful modeling however a caller terms hike could boost Netflix's performance. This week's markdown is somewhat much optimistic, contempt the terms people receiving a $20 haircut.

Oppenheimer's Helfstein argues that the stock's historically debased net aggregate is baking successful the near-term pressures successful advertizing and consumers shifting to lower-priced subscription tiers. It inactive sees upside successful Netflix stock, particularly if it tin code caller challenges. He is sticking with his firm's bullish outperform standing connected the shares. Even astatine the caller $100 terms goal, that represents a steadfast 36% of upside from wherever Netflix entered the caller trading week.

Shares of Netflix person tumbled 40% implicit the past year, with the lion's stock of that happening successful the past 3 months. The banal is trading for conscionable 20 times guardant earnings, a humanities bargain for a banal that has routinely commanded a premium fixed its sticky engagement, marketplace dominance, and dependable all-weather growth.

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