Netflix, Inc. (NASDAQ:NFLX)’s Buy rating was reaffirmed by the Needham & Company analyst Laura Martin, who assigned a price target of $525 to the stock. However, Martin has curtailed the full fiscal estimates. Netflix will release second results after the market closes on Monday, July 21st, and will host a live streaming via web at 5pm ET to discuss results.

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Netflix estimates revised

The analyst stated that the company is expected to report second quarter 2014 revenue of $1.334 billion, an increase of 25% year over year. Operating income is expected to be $125 million, surge of 119% year over year. Net income is projected at $69 million, a rise of 134% year over year and GAAP Earnings per share of $1.12, an increase of 131% year over year.

Outlook for the third and fourth quarter was revised to show the upshot of streaming video company’s international expansion into France, Germany, which will take the revenue higher marginally, but EPS would come little depressed. For full year 2014, Martin has forecasted revenue of $5.443 billion, a rise of 24% year over year and 1% higher than the previous estimates while operating income is expected at $469 million, an increase of 105% year over year and 14% down the previous estimates. The Earnings per share is projected at $4.19, up 126% year over year and 15% below the previous estimates.

For financial year 2015, the analyst has reiterated $6.69 billion revenue, operating income at $1.118 billion, a rise of 138% year over year and Earnings per share of $10.70, an increase of 155% year over year.

Shares at historical high

Netflix shares  are trading at the historical high of $472.35, a jump of 40% over the last three months. Reasons that drove shares to the high are better than expected quarterly performance, upgrades from sell sides and augmentation in Europe.

In the first quarter, activist investor Carl Icahn dropped 16% of his holding in Netflix, owing to which the market went cautious over the company’s valuation and growth prospects. Thereafter the stock price took a plunge, but not for long. However, the correction in the market price for short-term gave a good buying opportunity for the investors.

However, bearish investors and analysts still see the stock as overvalued. Recently, Barclays assigned Underweight rating to the stock, setting price target of $390.