NEW YORK (TheStreet) -- Shares of Netflix (NFLX) rose 1.84% at $488.15 following RBC Capital Markets reiteration of its "outperform" rating on the subscription streaming video service, as it raised its price target to $600 from $530.
Netflix is undervalued based on its growth prospects in Europe, according to RBC analyst Mark Mahaney, Investors.com. reports.
While Netflix stock is up over 30% this year, RBC says that it has a lot of room to grow.
Earlier today, Netflix hit its all-time high of 489.29.
"...sentiment remains negative - Netflix has the highest short interest and lowest buy rating ranking among all the large-cap Net stocks - which creates additional opportunity," Mahaney said, adding "We don't want to overstate it, but Netflix may be the 'most hated' stock in the Internet sector. And this creates potential additional long opportunity for the shares."
Netflix now has 36 million U.S. streaming subscribers and 14 million international subscribers.
TheStreet Ratings team rates NETFLIX INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate NETFLIX INC (NFLX) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."