NFLX has been upgraded from “neutral” to “outperform” with a price target of $ 586
FAANG share Netflix Inc (NASDAQ: NFLX) is up 2.2% to $ 529.20 on its most recent review after Credit Suisse upgraded streaming giant from neutral to outperform while maintaining its target price of $ 586. The analyst in question said that subscriber growth should normalize in the fourth quarter, highlighting the company’s high level of user satisfaction as well as its competitive advantage. The company also offers NFLX an attractive evaluation and entry point.
Analysts were already overwhelmingly optimistic about the stock, making today’s bull price even more impressive. Of the 30 in question, 23 were rated “Buy” or better. Plus, the 12 month consensus target of $ 613.68 is a 15.9% premium over current levels.
After hitting an all-time high of $ 593.28 on Jan. 20, Netflix stock created a channel with lower highs. After bouncing off their 320-day moving average earlier this month, stocks are back on the upswing and aiming for their fourth straight profit. Still, NFLX remains below its break-even level since the start of the year.
The option pits reflect the optimism of the analysts. This corresponds to the 10-day call / put volume ratio of Netflix stock of 2.91 on the International Securities Exchange (ISE), the Cboe Options Exchange (CBOE) and the NASDAQ OMX PHLX (PHLX), which is above all values from the last year. This means that calls are answered faster than usual.
A drill down on today’s option activity has already exceeded 59,000 calls and 9,385 puts, which is six times the intraday average. The most popular is the 6/25 530 strike call, which expires today, followed by the 7/2 540 call, both of which are currently opening new positions.
These traders are in luck because NFLX options are currently available to purchase at bargain prices. This corresponds to the Schaeffers volatility index (SVI) of the share of 24%, which is in the lower 4th percentile of the values of the previous year. In simpler terms, option players are now pricing in low volatility expectations.