One Wall Street firm is getting a lot more bullish on Netflix's (NASDAQ: NFLX) ability to dominant the video streaming market.
GBH Insights increased its price target for Netflix shares to $500 from $400, representing 28% upside to Monday's close. It is the highest target out of the 36 analysts who cover Netflix, The firm also reiterated its "highly attractive" rating.
Said GBH analyst Daniel Ives, "our bullish thesis on Netflix is based on our belief that the company's competitive moat, franchise appeal, ability to increase international streaming customers through 2020, and original content build out will translate into robust profitability and growth.”
Netflix shares hiked $6.08, or 1.6%, to $396.48 as the rest of the market fell on trade war fears. Its stock is up 103% this year through Monday, which is the second-best performance in the S&P 500.
The GBH analyst said the average Netflix customer watches its service more than 10 hours per week versus five hours per week for Amazon and Hulu, according to his firm's survey of users. He also said nearly 90% of Netflix's subscribers said they are willing to pay more for the service.
In a similar move, Piper Jaffray raised its price target to $420 from $367 and reiterated its overweight rating for Netflix shares Tuesday, predicting strong international subscriber growth for the company.
