Netflix shares closed lower in the US Tuesday, following an analyst upgrade research note in which investors were urged to buy the stock on its current dip. The TV streaming service also unveiled six new animated shows for family viewing.
Netflix shares ended the US Tuesday trading session 1.46% lower at €310.84. However, the stock is currently in the green in out-of-hours activity.
Netflix ratings upgrade
Earlier this week, analysts at Wall Street brokerage, Buckingham Research, shared an unexpected upgrade of the Netflix stock. After previously having an ‘underperform’ rating on Netflix, it raised that by two notches, to ‘buy’.
“Although we had been sceptical on its elevated stock price, we have always viewed Netflix as the continued top streaming category winner,” Buckingham Research analyst Matthew Harrigan wrote in a research note to clients.
He also raised his 12-month price target for the stock to $406 from $349, with “the stock's 27% decline from its July 12-month high being the primary upgrade catalyst,” Harrigan added.
New slate of animated shows
Separately, Netflix said Tuesday it is planning to create six new animated family entertainment films and shows, for its global audience.
The planned content comprises two family-feature films, The Willoughbys and My Father’s Dragon; animated series Go! Go! Cory Carson for a pre-school audience; and three additional series for a wider child and family audience, Maya and the Three, Kid Cosmic and Trash Truck.
“We know that there is no one type of family. We embrace all kinds of creators so we can tell unique and diverse stories that resonate with each and every Netflix family,” said Melissa Cobb, VP of Kids and Family at Netflix.
“With our slate of global original animated feature films and series, we want to give families more moments to share the laughter, wonder and connection that comes from being immersed in a great story,” Cobb added.