Netflix, Inc. (NASDAQ:NFLX) stock touched $445 a share today, surpassing the previous one-year high of $449.69. The company’s shares have shown that they just won’t quit, as just one year ago, the stock was trading at less than $200 a share.
Bank of America edges Netflix PT upward
Of course as with most Wall Street darlings, Netflix, Inc. (NASDAQ:NFLX) has gotten rave reviews from numerous firms—except for Bank of America. Nonetheless, analysts there raised their price target from $189 to $226 per share. That still suggests a downside potential of nearly 50% though.
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Analysts at Needham & Company also raised their price target for Netflix, Inc. (NASDAQ:NFLX) this week, boosting it from $425 to $525 a share and reiterating their Buy rating. Other recent reports came from The Street, which reiterated its Buy rating on Netflix, and Cowen and Company, which reiterated its Positive rating on the company’s stock this week.
Netflix makes a deal with Comcast
One of the reasons analysts have gotten even more bullish on Netflix, Inc. (NASDAQ:NFLX) is the recently announced deal with Comcast Corporation (NASDAQ:CMCSA). Under the terms of the deal, Netflix will pay to receive direct access to Comcast’s network so that it doesn’t have to deliver traffic through third party companies.
This is the first time Netflix, Inc. (NASDAQ:NFLX) has paid for direct access to an Internet service provider’s network, according to CNN Money. The company already is able to connect to some smaller providers free. So since this is the first time Netflix is paying for this access, does this mean it will raise its prices?
Will Netflix raise prices?
Analysts have different views on the topic. According to CNN Money, a price change is unlikely in the near term. Netflix, Inc. (NASDAQ:NFLX) didn’t provide an update to guidance with the announcement about the deal with Comcast Corporation (NASDAQ:CMCSA), which some believe means that the company doesn’t expect any big changes.
Frost & Sullivan analyst Dan Rayburn thinks Netflix, Inc. (NASDAQ:NFLX) will save money on the deal because it cuts out third parties. Others aren’t sure of that, but they don’t think there will be much of an impact on Netflix’s bottom line. Still others, like Wedbush analyst Michael Pachter, believe the company will raise its subscription prices by $1 or $2 a month starting next year.