Netflix Stock Price Targets Raised as Analysts Laud U.S., International Growth

Reed Hastings Netflix - H 2015
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Reed Hastings Netflix - H 2015

"The story is working better than expected," says one Wall Street observer after the streaming video giant's latest earnings report.

Following Netflix's strong second-quarter earnings report late on Wednesday, Wall Street analysts on Thursday raised their stock price targets.

"The story is working better than expected," wrote FBR Capital Markets analyst Barton Crockett in a report, in which he raised his price target on the stock by 10 percent to $142.

"Netflix Inc.'s second-quarter earnings report highlighted a growth story that is working better than we anticipated when we upgraded earlier this year with a split-adjusted price target of $129," he explained. "Subscriber growth is more robust than we anticipated. Expenses are lower, arguing for a better earnings opportunity." He maintained his "outperform" rating on the stock.

Cowen analyst John Blackledge also raised his target price, in his case from $109 to $150.

"With expectations high going into the second quarter, Netflix managed to trounce expectations with a stellar second-quarter subs beat in the U.S. and international driven by improving content and better brand recognition and strong third-quarter guide," he said. "With the original content strategy clearly paying off, we see a lot to like." He maintained his "outperform" rating on the stock.

"We now estimate 6.5 million U.S. sub adds and 11.7 million international sub adds for 2015 (versus 6.0 million U.S. and 11.5 million international prior)," he said, also raising his longer-term subscriber forecast.

Twitter: @georgszalai