Netflix Stock Hits Record High; Plus, Banks Get Bull Notes Before Earnings

By Katie Coburn / October 09, 2017 / www.schaeffersresearch.com / Article Link

Analysts are weighing in on TV streaming service Netflix, Inc. (NASDAQ:NFLX), as well as bank stocks Citigroup Inc (NYSE:C) and Bank of America Corp (NYSE:BAC). Here's a quick roundup of today's bullish brokerage notes on shares of NFLX, C, and BAC.

Netflix Hits Record High on Analysts' High Expectations

Last seen up 0.1% to trade at $198.21, Netflix stock earlier hit a record high of $199.40, after Loop Capital raised its price target to $228 from $212, citing its expectations for increased subscriber growth. Meanwhile, MKM Partners reiterated its "buy" rating on NFLX stock and price target of $230. The online TV streaming company is schedule to report earnings after the close one week from today.

NFLX stock has surged up the charts this year, tacking on roughly 60% in value. The shares recently shot off their 40-day moving average, and a short squeeze could propel them even higher. Short interest on the equity has grown 9.3% during the past two reporting periods to 29.6 million shares. At the equity's average daily trading volume, it would take more than a week to cover all these shorted shares.

Price-Target Hike Doesn't Lift Citigroup Stock

Citigroup stock is fractionally lower at $75.62, even after Credit Suisse raised its price target to $83 from $73. The equity, which has added 54% in value over the past 12 months, sits deep into overbought territory with a 14-day Relative Index Strength (RSI) of 79, suggesting a breather may have been in store.

The large-cap bank is expected to report earnings after the close Thursday. Options traders have upped the bullish ante on C stock ahead of the earnings event, as evidenced by the security's 10-day call/put volume ratio of 2.92 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) -- ranking in the 74th annual percentile. In other words, options players have bought to open more than two calls for every put during the past two weeks.

Bank of America Stock Remains Within Pennies of Fresh Highs

Credit Suisseraised its price target on Bank of America stock to $31 from $28, though the shares were last seen trading 0.4% lower at $26.10. BAC is still trading within pennies of the nine-year high of $26.30 it hit on Friday. Like its sector peer Citigroup , BAC stock has performed quite well during the past 12 months, adding over 62%. Bank of America also sits in overbought territory, however, as evidenced by its 14-day RSI of 71.3, meaning a short-term pullback may be in the cards. The company is slated to report earnings Friday morning.

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