Talk About Lousy Timing for a Netflix Analyst Price Target Downgrade
Oppenheimer is slashing its price target on the streaming giant, but it's not as bad as you might think.
Overview
There is never a good time for a stock to be on the losing end of an analyst downgrade or a sinking price target adjustment, but the worst possible scenario has to be just before the publicly traded company steps up with fresh financials. This happened on Monday, with Oppenheimer slashing its price target on Netflix (NASDAQ: NFLX) from $120 to $100. The leading premium streaming platform reports its second-quarter results on Thursday afternoon.
Wall Street pros aren't perfect. They are human, and not just because they have a tendency to aim lower on earnings projections more often than not. However, knocking down a price target instead of waiting for the actual numbers to come out three days later is intentional. Oppenheimer didn't want to enter earnings season with a higher price target. It might not be a big deal, but let's zoom in for a closer look.
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Originally published at www.fool.com.