Analysts said they lifted their price target due primarily to their master discounted cash flow matrix, which favors greater free cash flow generation in years 2019-2024.
Furthermore, they added that the popular American comedy-drama series Orange is the New Black will serve as a near-term catalyst for both the domestic and international subscriber lines.
This action also comes after Netflix said it is in talks with Chinese online broadcasting companies to enter China's online video market.
However, investors may be overlooking some of the inherent risks, as the Wall Street Journal reports that Netflix's content won't necessarily translate well, citing difficulties to see a show like Orange is the New Black resonating in China as much as it does in the U.S.
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 notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and premium valuation."