Netflix (NFLX) gets an upgrade

Netflix, Inc. (Public, NASDAQ:NFLX)  shares are up 4% today on an Upgrade with shares now trading around $23. 

Webush Morgan Securities upgraded the Netflix on forecasts for growth following a Movie Gallery Inc.'s (NASDAQ:MOVI) bankruptcy. Movie Gallery is going Chapter 11, so don't even think about touching that company.  Now it all comes down to Blockbuster (NYSE:BBI) versus Netflix, a battle that is now just, well, boring.

Netflix vs. Blockbuster 
Analyst Michael Pachter changed Netflix to "Buy" from Hold" and raised his price target to $30 from $18, a huge jump so thus Wall Street is jumping for joy.  Pachter said:"We believe the competitive environment is improving at a quicker pace."  Raising a price target more than $10 is considerable when the way of the DVD rental business is dying a slow death.  On-Demand is King and that is where the real growth is, if DVD rental businesses still had a chance, Movie Gallery wouldn't be going down in flames.

Well be watching on November 1st when Blockbuster delivers their Q3 2007 results.  We all know that NFLX is the best investment if you are trying to play this sector, why hide from the facts?  Sure BBI could spike and you could make a few bucks, but a $12 (which works out to be a 67% increase) upgrade from Wall Street is priceless at this stage in the game. Netflix, Inc. will host a conference call to discuss its Q3 2007 financial results and business outlook on October 22, 2007, so get ready for the drama.

Frank Lara Jr.

Article by Frank Lara Jr.

Co-Founder of TheStockMasters.com

 


The Stockmasters Master Picks newsletter has been kicking ass and taking names for the past year. Our new publication comes out on Monday (10/15) and we'll be cashing out the following stocks for some easy and quick gains:
Activision, Inc. (ATVI) is up almost 20% since April 2007.

Service Corp. International (SCI) is up 43% since our first newsletter back in October 2006.

March 2007 we said buy Halliburton Company(HAL), it’s up more than 25% since then.

Blockbuster Inc. (BBI) has gone up 36% since we told you to buy back in June 2007.
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