Netflix, Inc. (NASDAQ:NFLX) is in a prime position to dominate the Internet television market, according to analysts at one firm. Analysts at Cantor Fitzgerald have raised their price target on shares of Netflix, Inc. (NASDAQ:NFLX) to $180 per share and reiterated their Buy rating on the stock. Their price target comes out in stark opposition to the target set by Wedbush analyst Michael Pachter, whose target is $55 per share.
In a report issued to investors, Cantor Fitzgerald analysts said their recent conversations with Netflix, Inc. (NASDAQ:NFLX) management indicate that things are going pretty well for the company. As a result, they believe the company has “a unique position to benefit disproportionally from the rise of Internet TV.”
The analysts said the key to increasing subscribership is continual improvement of the content and experience offered. Netflix has certainly been delivering on this goal through the securing of exclusive content from the likes of The Walt Disney Company (NYSE:DIS) and Warner Bros.
They also believe that the company’s management continues to believe the company is being penalized for its huge 2011 price increase, they expect the end of the three-year period after that price increase will enable the company to make some additional “price adjustments” in a way that the company can focus on profitability.
They’re looking for Netflix, Inc. (NASDAQ:NFLX) to launch a four-stream service upgrade this year at an additional monthly fee. As a result of that expectation and the belief that other higher priced plans will be forthcoming, they’ve revised their expected average revenue per use for the company up to $11.60 from $9.65 by 2021.
Other analysts have expressed concern about Netflix’s low $8 per month subscription for an all-you-can-eat buffet of content, but small adjustments and the addition of premium priced packages like the ones Cantor Fitzgerald is predicting could be an excellent solution.
At the moment of this writing, shares of Netflix, Inc. (NASDAQ:NFLX) were down 2 percent.