Why Netflix Stock Is Rising Today
Shares of Netflix (NASDAQ: NFLX) jumped higher on Tuesday morning, thanks to a bullish analyst update. The early gains peaked at 10:20 a.m. ET, when Netflix stock traded 5.3% above Monday's closing price.
Daiwa Capital Markets upgraded Netflix stock from a neutral rating to an outperform grade. Daiwa analyst Satoshi Tanaka also boosted his target price on the stock from $226 to $330 per share. The new target represents a 17% premium over last-night's final price point and an 11% upside from Tuesday morning's peak reading.
The firm hasn't published a detailed explanation of the logic behind this upgrade. However, Netflix posted robust earnings last week, exceeding analyst estimates by 1% on the revenue line and by 45% in earnings. The company also added subscribers after two straight quarters of sinking customer tallies, and the report also outlined Netflix's ad-supported service and password-sharing crackdown plans in greater detail.
Source Fool.com
