Netflix (NASDAQ: NFLX) traded 6% higher on Friday morning, after Citigroup assured investors that Netflix stock still presents an opportunity.
Citigroup analyst Mark May upgraded Netflix from “neutral” to “buy” with a $375 price target. This represents a premium of 17% from yesterday’s closing price. With Netflix stock price down over 10% in recent days, the call represents a buy-the-dip opportunity.
According to May, the bottom line is that, “the opportunity to continue growing international subscribers and exert pricing power leverage remain.”
However, we believe this call represents poor timing.
In analyzing the market cycles for NFLX, our analysis is that the stock has begun the declining phase of its current cycle.
This corrective period is far from over, as indicated from our downside target of near $300 by December.
Netflix (NFLX) Stock Chart with Weekly Bars
For more from Slim, or to learn about cycle analysis, check out the askSlim Market Week show every Friday on our YouTube channel.
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Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
