NEW YORK (TheStreet) -- Netflix (NFLX) - Get Netflix, Inc. (NFLX) Report shares are up by 5.88 to $116.61 in late morning trading on Thursday, continuing to climb after the company announced its first foray into the Japanese market earlier this week.
The online media streaming company announced a new partnership with Japanese multinational telecom company Softbank (SFTBY) .
Softbank owns one of Japan's largest telecom firms and is partnering with Netflix for the launch of its television streaming service in that country on September 2.
Beginning September 2, Softbank customers will be able to sign up for Netflix through the company's retail shops, websites and call centers as well as pay for Netflix through Softbank's own billing system.
Additionally, On Wednesday, analysts at RBC Capital increased their price target on the company to $140 from $125 while maintaining an "outperform" rating on the stock.
Netflix's shares were a victim of the market wide pull back earlier this week but have rallied to gain in the three previous sessions.
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, expanding profit margins and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- NFLX's revenue growth trails the industry average of 33.4%. Since the same quarter one year prior, revenues rose by 22.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The gross profit margin for NETFLIX INC is currently very high, coming in at 84.02%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 1.60% trails the industry average.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Internet & Catalog Retail industry and the overall market, NETFLIX INC's return on equity is below that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: NFLX Ratings Report