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.

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Source Fool.com