According to a report by Reuters, citing a person familiar with the matter, Netflix Inc is being investigated by Italian prosecutors over alleged tax evasion.
Netflix shares closed higher for the fourth time in the past twelve trading sessions on NASDAQ on Thursday. The stock inched up 0.04% ($0.12) to $268.15, after touching an intraday low at $257.14, or a price level not seen since September 25th ($253.70).
Shares of Netflix Inc have edged up 0.18% so far in 2019 compared with a 16.11% gain for the benchmark index, S&P 500 (SPX).
In 2018, Netflix Inc’s stock went up 39.44%, thus, it outperformed the S&P 500, which registered a 6.24% loss.
Milan prosecutors argue that Netflix has to pay taxes in Italy, no matter that the company has no physical presence in the Mediterranean country. Netflix uses digital infrastructure so that it is able to stream content to 1.4 million users in Italy.
Still, according to prosecutors, cables and computer servers, which the company uses in Italy, amount to a physical presence in the country.
The source also said that no executive from Netflix was currently being investigated since the probe was at a preliminary stage.
Analyst stock price forecast and recommendation
According to CNN Money, the 35 analysts, offering 12-month forecasts regarding Netflix Inc’s stock price, have a median target of $415.00, with a high estimate of $451.00 and a low estimate of $188.00. The median estimate represents a 54.76% upside compared to the closing price of $268.15 on October 3rd.
The same media also reported that at least 26 out of 40 surveyed investment analysts had rated Netflix Inc’s stock as “Buy”, while 10 – as “Hold”. On the other hand, 2 analysts had recommended selling the stock.
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