Netflix downgraded by Societe Generale to sell
Netflix Inc.'s stock slumped 1.3% in premarket trade Thursday, after Societe Generale turned bearish, citing concerns over valuation. Analyst Christopher Cherblanc lowered his rating to sell from buy, saying that while he's still optimistic about the company's business prospects, the near doubling in the stock year to date means it is now "priced for perfection." Meanwhile, he raised his stock price target to $585, which is 13% below Wednesday's closing price of $678.61, from $480. Cherblanc said while Netflix's investment case is "fiendishly simple and attractive," the stock is highly sensitive to changes in investor perceptions. And given the recent rapid rise in the stock -- it's up 99% year to date through Wednesday -- "we consequently believe the shares' risk/reward has considerably deteriorated, and we downgrade our recommendation to sell."
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