Tuesday, March 15, 2011

Goldman Flexes Muscle, Netflix Responds ..

7:29 (Dow Jones) Goldman Sachs says the good times aren't done yet for Netflix (NFLX) as it moves the movie-rental firm to buy and boosts its price target to $300 from $210. It says NFLX "now company has sufficient scale to make it difficult for new entrants given low price points and expensive content costs; and competition to date has been underwhelming and we believe that demand for streaming online content could be large enough for multiple players." The stock is down 19% the past month amid concerns of potential competition fears and after NFLX had surged fivefold in 13 months. Shares up fractionally premarket at $202 amid a broader market rout.

Shares closed up 8% following this Tuesday morning upgrade.

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