Pivotal Research Group analyst Jeffrey Wlodarczak lifted his price target on the streaming media giant to $500 from $420. Wlodarczak's boost to $500 is the second hike to that price target this week.
"We view the close of the [AT&T Inc. (T) - Get Report and Time Warner Inc. (TWX) ] deal as a potential nice positive for Netflix in regards to picking up [Time Warner] talent and likely weakening a global competitor (HBO) as AT&T is likely to find it very difficult to mash together two extremely disparate operating cultures," said Wlodarczak in a note on Thursday, June 21.
He also said Netflix "appears to operate in a virtuous cycle, as the larger [its] subscriber base grows ... the more [it] can spend on original content, which increases the potential target market for [its] service (and reduces existing subscriber churn and increases the ability to take future price increases)."
Earlier this week, Daniel Ives, an analyst with GBH Insight, raised Netflix to a Wall Street-high of $500. Analysts from Piper Jaffray and Monness, Crespi, Hardt & Co. also increased their price targets this week.
In morning trading, shares were rising slightly to $418.