The recent selloff in Netflix, Inc. (NASDAQ:NFLX) following its earnings report is viewed as an opportunity by RBC Capital Markets analyst Mark Mahaney. Shares of the streaming company were down more than 20% after the streaming company missed net subscriber add estimates for the third-quarter. Netflix only added 980,000 domestic subscribers in the quarter, below the 1.37 million net adds expected by analysts.

Netflix, Inc. Stock Correction Provides An Opportunity: Mahaney

Netflix rated Outperform

Analyst Mark Mahaney is bullish on Netflix, and he explains his reasons on the Halftime Report on CNBC. Mahaney is optimistic regarding the company acquiring 50 million subscribers by 2017, and rates the stock as Outperform with a price target of $550 per share.

“I get the logic,” of the selloff he says, but adds, “I just want to remind people to step back a little bit. We like this entry point. We’re buyers here.”

More and more people are choosing tablets and also TVs connected with Internet, which will benefit Netflix. The fact that the company’s Canadian expansion is making similar profits to U.S.operations bodes well for the company as it expands internationally.

What makes Mahaney bullish on Netflix?

Today, investors mainly base their buy or sell decisions on the subscribers added by Netflix. If they think that the subscribers will fall in the future, or the company will take more than two-three years to reach the 50 million subscribers mark, then many will refrain from buying the stock. However, Mahaney believes the company will fare well in the coming days and will be able to reach their lofty target.

Supporting his beliefs, the analyst mentions that the competition is not going to get any tougher in the future. Moreover, Netflix is constantly coming up with great packages and offers for its subscribers, which helps build brand loyalty. The streaming company has the ability to attract more consumers, he says, and it still has “major secular trends” behind it.

“We like this stock right here, right now,” analyst said.

In morning trading, Netflix sharse were down almost 5% to $343.59. Year to date, shares of the streaming company are down over 6%.