Following are the 2 stocks which have been updated by wall street analysts.
Netflix (NASDAQ:NFLX) : If content is king in streaming, Netflix still wears The Crown; upgrade to Outperform — Credit Suisse
Analyst Douglas Mitchelson added, “We are upgrading Netflix from Neutral to Outperform as we expect subscriber growth to normalize in 4Q21 and our U.S. consumer survey reinforced the strong competitive position and high user satisfaction for the global SVOD leader, paired with a favorable risk/reward entry point (HOLT® shows the stock actually discounting a material decline in CFROI®) and attractive absolute valuation (sub-20x 2025 P/E).
Our estimates and $586 DCF-based target price remain unchanged…Our tracking of Netflix releases, in addition to management commentary for the past year, suggests a strong August-December content slate with numerous potential top-of-funnel titles – and we expect a stronger full year slate in 2022 than 2021, led by Stranger Things Season 5 and Bridgerton Season 2.
This follows a much lighter-than-normal first five months of the year, along with price increase churn and pandemic pullforward hangover as further burdens on subscriber growth. Of note, 2Q results and 3Q guidance remain uncertain, but we expect any 2Q/3Q disappointment would prove a clearing event in any case in front of growth rebounding in 4Q21.”
NFLX stock jumped 1.65% to $526.61 in the premarket session.
Nike Inc (NYSE:NKE) target raised to $175 at Pivotal Research Group
H Pivotal Research Group raises their NKE tgt to $175 from $167. Analyst Mitch Kummetz added, “NKE reported much-better-than-expected 4Q21 results. On a two-year basis, sales were up 21%, led by 29% growth in North America. Also, despite the China boycott, this region was up 14% from two years ago. Given the strong sales growth, NKE achieved significant leverage in the quarter, as SG&A was down 310bp from two years ago. On the company’s conference call, NKE not only provided FY22 guidance but also outlined its FY25 growth plan. For FY22, the company’s sales guidance was above consensus, and its GM and SG&A commentary prompted us to also raise our EBIT and EPS estimates for the year.
For FY25, we have yet to model the year, but NKE’s outlook of a M-HTeens% EPS CAGR suggests something in the mid-to-high-$6 range. We’re now raising our FY23 and FY24 estimates to correspond with the trajectory implied by that outlook. All told, NKE’s 4Q results show a lot of momentum, and its FY22 and FY25 guidance shows a lot of confidence. The confidence is partly based on the momentum, but that’s not entirely in the company’s control. The confidence is also partly based on NKE’s digital-led strategy, and that is very much in the company’s control.”
NKE stock soared 14% to $151.81 in the pre-market session.
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