Shares of Netflix rose 1.6 percent in after-hours trading Thursday after an analyst at UBS upgraded the video streaming giant.
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Analyst Eric Sheridan hiked his rating on the stock to buy from neutral. He also raised his price target to $410 from $400 per share, implying a 26 percent upside from Thursday’s close of $324.66.
In a note to clients titled: « Taking The Blindfold Off, » Sheridan cited the success of Netflix’s content, solid subscriber momentum and a better understanding of the « key debates » the company has faced recently.
« After six months of stock underperformance & key debates emerging about competition, margins & FCF, we think these debates are better understood by investors and reflected in the current stock price, » Sheridan wrote. « With content spend now at a scale of the major media companies and titles continuing to demonstrate outsized marketplace success, we see the moat around NFLX’s global positioning widening and its long-term secular winner status remaining intact. »
Netflix shares have been on fire to start off 2019, rising 21 percent in the first seven sessions of the year.
This is a developing story. Check back for updates.