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One of the most negative Netflix analysts on Wall Street explains what would make him change his tune (NFLX)

One of the most negative Netflix analysts on Wall Street explains what would make him change his tune (NFLX)
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Wedbush has one of the most bearish outlooks on Netflix of any Wall Street shop.




But after the company's earnings on Thursday, the firm's analysts lifted their price target and said they would reconsider their "underperform" rating should Netflix's cash burn stabilize.




One of those analysts told Business Insider he would reconsider his rating and price target if Netflix were to aggressively reverse its cash burn.




"That would get me to a $256 price target, and Id reconsider upgrading to Neutral then," he said in an email.




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Wall Street analysts on Friday were heaping praise onto Netflix following the streaming giant's quarterly-earnings report, raising their price targets and recommending investors buy up the name. They cited strong content slates and solid subscriber-growth momentum.
One of the most negative firms on the name even bumped up its target, but said the company's cash burn was still a massive concern.
Netflix reported quarterly earnings-per-share estimates on Thursday that exceeded analysts' expectations, but fell slightly short of revenue expectations. The company reiterated its expectation for its 2019 cash burn to be similar to that of 2018, implying negative free-cash-flow of around $3 billion despite its roughly $1.5 billion in incremental revenue that should result from the price hike it announced earlier this week.
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