Netflix Get a Boost After Bullish Remarks from Citi

Shares of streaming giant Netflix were surging after Citigroup said that investors should buy the big dip.

In the last five days shares have tumbled nearly 12% as the tech sector has been in a sell off.

According to Citi, Netflix is a “high-quality, recurring revenue franchise with attractive upside potential.” The firm has reiterated a $375 price target and increased its rating from “neutral” to “buy.”

“We view the recent sell-off as an opportunity to own a high-quality, recurring revenue franchise with attractive upside potential,” Citi analysts said.

The firm also said that “fundamentals remain strong… and the opportunity to continue growing international subs and to exert pricing power leverage remain, in our view.”

According to the firm’s analyst Kevin Toomey, current forecasts call for Netflix streaming growth of 700,000 domestically and 4.75 million internationally in the third quarter. He expects management to likely forecast the numbers respectively to 1.65 million and 5.75 million for the fourth quarter.
Even with all of the losses lately, tumbling 18% in the last three months, shares of Netflix are still in the green for the year and up 67.3%.

Disclaimer: We have no position in Netflix Inc. (NASDAQ: NFLX) and have not been compensated for this article.