Netflix Stock Rises 5 Percent After Praise From Analyst
Shares of Netflix pushed 5 percent higher on heavy trading volume Tuesday after an analyst raised his price target on the stock by a hefty $65 per share.
Citing "increased margin and subscriber assumptions," Pacific Crest analyst Andy Hargreaves upped his target to $225. The stock closed $9.82 higher at $190.61.
Hargreaves predicts that Netflix will grow its base of U.S. streaming subscribers to 36 million by the end of 2015, whereas it had 27.2 million at the end of last year. He is also bullish on Netflix's original programming.
"Netflix's huge database of subscriber viewing habits should allow it to invest in original content where it will be most effective, while purchasing third-party content across an array of genres that can attract an extremely large audience," Hargreaves wrote.
Netflix shares have advanced nearly 220 percent in five months.