The Ratings Game: Still believers, Wall Street analysts stand behind Netflix despite shortfall

Wall Street analysts are standing behind Netflix Inc., despite the company’s weaker-than-expected subscriber growth in the second quarter.

Most see the streaming company’s subscriber miss as simply growing pains, something to be expected as Netflix NFLX, +1.18% works to expand its reach and figures out the right balance of content spend and marketing.

“Our longer-term view of growth potential is unchanged,” analysts at KeyBanc Capital Markets, led by Andy Hargreaves, wrote in a Monday note after Netflix announced its earnings results. Although KeyBanc lowered its price target to $375 from $385 based on “a decline to our near-term estimates,” Hargreaves reiterated KeyBanc’s overweight rating, writing: “We continue to recommend owning Netflix.

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