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Consumer Sector Update for 01/21/2015: NFLX,DECK,SAIA

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Top Consumer Stocks

WMT -0.10%

MCD -0.68%

DIS -0.84%

CVS +0.70%

KO +0.38%

Consumer stocks were producing moderate gains Wednesday afternoon with shares of consumer staples companies in the S&P 500 advancing about 0.1%. Shares of consumer discretionary firms in the S&P 500 were up 0.5%.

In company news, Netflix ( NFLX ) surged Wednesday following the streaming video service late yesterday issuing an upbeat earnings report, prompting a large batch of higher price targets for the stock at several research shops today.

Net income during the three months ended Dec. 31 rose to $83.4 million, or $1.35 per share, improving on a $48.4 million profit during the year-ago period. Excluding a $0.63 per share gain that followed resolution of a tax audit, the company earned $0.72 per share, topping the Capital IQ consensus by $0.28 per share.

Revenue rose 25.4% over the same quarter last year to $1.48 billion, matching estimates.

Following the Q4 results, Morgan Stanley raised its price target for NFLX shares by $25 to $450 each while Northland Capital also increased its price target by $25 to $390 a share. SunTrust bumped its price target by $35 to $410 and CRT Capital raised its price target by $50 to $425 million.

But Credit Suisse was the outlier today, maintaining a Neutral rating and cutting its price target by $25 to $417 a share, concluding "Street models could be wrong," given NFLX's aggressive international expansion plans.

NFLX shares were up more than 17% in late trade at $409.26 each, earlier topping out at $414.68 a share. The stock has traded within a 52-week range of $299.50 to $489.29 a share, slipping about 10% over the past year prior to today's big price gain.

In other sector news,

(+) DECK, Promotes General Counsel David Lafitte to chief operating officer, effective Feb 2. He replaces Zohar Ziv, who retired from DECK on Jan. 16.

(-) SAIA, Reduced to Hold from Buy at BB&T Capital Markets. No price target information was available.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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