The firm maintained its "buy" rating on shares of the Los Gatos, CA-based video streaming service.
Netflix reported better-than-expected results for the 2016 third quarter on Monday.
The company posted earnings of 12 cents per diluted share on revenue of $2.29 billion, surpassing analysts' expected earnings of 6 cents per share and $2.28 billion in revenue.
MKM said Netflix's churn volatility from the second quarter has now been absorbed and "with less damage than feared," adding that it expects a "very material profit ramp" moving forward.
Netflix added about 400,000 domestic subscibers and 3.2 million international subscribers during the quarter, topping analysts' estimates of 309,000 domestic subscriber additions and 2.01 million international subscriber additions.
Netflix's strong content lineup served as a catalyst in international markets, the firm added.
"NFLX is already the largest content spender and global scale is allowing the company to continue heavy content investment while expanding margins," MKM said in an analyst note.
The firm noted its five-year international growth forecast of 105 million subscribers by 2021 could now be considered conservative.
Shares of Netflix closed higher on Friday.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
The team rates Netflix as a Hold with a ratings score of C+. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, the team also finds weaknesses including disappointing return on equity, weak operating cash flow and feeble growth in the company's earnings per share.
You can view the full analysis from the report here: NFLX