NEW YORK (TheStreet) -- Shares of Netflix Inc (NFLX) are advancing, higher by 0.23% to $622.96 in late afternoon trading Thursday, after Citigroup analysts raised their price target to $722 from $584 earlier today.
The firm maintained a "buy" rating on the stock, and increased its price objective citing the company's under-appreciated expansion into international markets.
Citigroup said Netflix shares still have room to advance. The firm noted the U.S. only makes up 18% of Netflix's total addressable market based on broadband household metrics.
In addition, analysts believe subscribership should trend positively as original content grows, with a potential for a 20% U.S. streaming revenue growth in 2016.
Citi added that Netflix's current stock price does not account for additional value from international launches, which could include Spain, Italy, Portugal, China, Russia, and India.
Netflix is an Internet television network that allows users to play, pause and resume watching content, with more than 44 million members in 40 countries. The company is based in Los Gatos, Calif.
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 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."