Netflix, Inc. (NASDAQ:NFLX), American Express Company (NYSE:AXP) and eBay Inc (NASDAQ:EBAY) had a shift in their ratings during Thursday’s Analysts’ Actions. American Express reported a rather successful third quarter earnings on Wednesday, whereas both eBay and Netflix reported a disappointing Q3 results. Susannah Lee reported on ‘The Street’ about the Thursday’s Analysts’ actions.
Netflix, Inc. (NASDAQ:NFLX) shares took a nose dive and dropped by more than 25% in the premarket trading Thursday, due to a disappointing third quarter earnings report. The major disappointment in the Netflix’s report was that the company could add only 3 million subscribers in the quarter, but it had guided to add 3.7 million subscribers. In US, the company could add only 1 million subscribers, which was less than the 1.3 million subscribers added in Q3 2013. Lee reported that Jefferies Group has upgraded the Netflix, Inc. (NASDAQ:NFLX) from ‘HOLD’ to ‘UNDERWEIGHT’ and raised the price target to $350 from $300. Jefferies believes that the risk to reward ratio is pretty much favorable at the moment with Netflix stock.
“Netflix (NFLX) and American Express (AXP) are upgraded but a downgrade for eBay (EBAY) in Thursday’s Analysts’ Actions. Netflix was raised to HOLD at Jefferies from UNDERWEIGHT. The firm upped the price target to $350, which is much closer to where the stock is currently trading. The analysts’ believe the risk/reward is more favorable at current levels,” Lee said.
eBay Inc (NASDAQ:EBAY) also reported a disappointing third quarter report. They reported EPS of $0.68 and $4.35 billion revenue for Q3, but the street consensus estimate was around $0.67 EPS and $4.37 billion revenue. The major disappointment though was the fact that the company has lowered its guidance for 2014 revenue to $17.85 – $17.95 billion, whereas the initial guidance was $18.00 – $18.30 billion. eBay Inc (NASDAQ:EBAY) share prices were falling for the last two weeks and hit an new low for 2014 on Thursday. Post the lowered revenue guidance set by eBay, RBC Capital has downgraded the eBay ratings from ‘OUTPERFORM’ to ‘SECTORPERFORM’. RBC Capital analysts pointed at the lowered guidance for the year and reduced the price target to $55 from $62, which is still $10 more than the current stock price.
On the contrary, American Express Company (NYSE:AXP) reported a pretty successful earning reports for the first time in 2014. In the other two quarter, they could not meet the street’s expectations, but in Q3, they managed to beat the streets expectation. They reported a $1.48 billion revenue and EPS of $1.40 for Q3, which beat the street expectation of $1.37 per share. Due to the uptrend in company’s performance, JPMorgan had upgraded the American Express Company (NYSE:AXP) to ‘NEUTRAL’ from ‘UNDERWEIGHT’, but JPMorgan also had lowered the price target to $90 from $95. AXP is currently trading at around $80. JPMorgan pointed out that the recent sell-off restored the upside/downside balance for American Express.
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