The firm said strong first-quarter results with domestic subscriber growth inline with expectations, international subscriptions growth and higher-than-expected earnings supporting their bullish thesis.
Also proving positive, Netflix said it intends to increase pricing for new subscribers between $1 and $2 a month.
"Given significant investments in content going forward to improve the service, Netflix is increasing pricing on new subscribers by $1-2 later this quarter and we expect significant grandfathering of existing subs, likely 2 yrs in the US," wrote analyst Doug Anmuth in the report.
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Separately, TheStreet Ratings team rates NETFLIX INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate NETFLIX INC (NFLX) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company's return on equity has been disappointing."
- You can view the full analysis from the report here: NFLX Ratings Report