Tuesday was a bright day for Netflix, Inc. (NASDAQ:NFLX) Inc as the stock moved up 3%. Analysts also appear to be bullish on the shares. Morgan Stanley came out with an optimistic call from every analyst as the video-streaming company is looking forward to substantial gain from big subscriber growth in the U.S. and abroad over the next several years.
Potential U.S. and international opportunities
Analyst Benjamin Swinburne at Morgan Stanley set a $500 price target and raised the firm’s rating from Equal-Weight to Overweight. Swinburne is bullish given the fact that U.S. subscribers will likely show tremendous growth up to 55 million by the end of the decade from about 35.7 million presently.
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Analysts are also sanguine on overseas opportunities for the video streaming company. Internationally, Netflix, Inc. (NASDAQ:NFLX) has roughly 10% penetration of the 110 million broadband homes in countries Netflix currently offers its service. That percentage is expected to double by the end of the decade.
Analysts acknowledge that their outlook may look bullish, but the company is expected to grab the brass ring considering its impressive run in Canada, the UK and the Nordic regions. Mr. Swinburne said, “Further, the ubiquity of broadband, proliferation of connected devices, and arbitrage opportunity of serialized programming should allow Netflix to scale international and drive long-term margins.”
Netflix in positive trend
Netflix, Inc. (NASDAQ:NFLX) is in a positive sector since it makes user-friendly technique to stream content to mobile phones, smart TVs and tablets. The streaming company has more subscribers than competitors like HBO, Amazon.com, and Time Warner, and analysts believe that the number will continue to grow as users watch content on Wi-Fi enabled devices.
The stock has been quite volatile over last few months, rallying more than 40% since the end of April. Netflix, Inc. (NASDAQ:NFLX), which hit a record high of $458 on March 6, dropped 31% through the end of April, primarily due to the selling pressure in the market for social media, Internet and biotech stocks, according to the Wall Street Journal. Many of those stocks have started to rebound, and Netflix has also bounced back. Year to date, the stock is up over 20% and has almost doubled in the past 12 months.
Netflix, Inc. (NASDAQ:NFLX) made a one year high of $458 and a one year low of 207.56. The market cap of the stock is $26.60 billion with a current P/E of 166.78.