Even after its recent surge, Netflix stock has a runway to climb higher over the next 12 months, a pair of Wall Street analysts said Tuesday.
BofA Securities analyst Jessica Reif Ehrlich upped her price target on Netflix stock to 490 from 410. She also reiterated her buy rating.
Meanwhile, Guggenheim analyst Michael Morris raised his price target to 500 from 375. He rates Netflix as buy.
On the stock market today, Netflix rose 2.8% to close at 435.73. Year to date, Netflix is up nearly 48%.
Last week, at least three Wall Street analysts raised their price targets on Netflix stock.
Netflix Stock Hits Profit-Taking Zone
Reif Ehrlich raised her estimates on Netflix after considering the internet television network's crackdown on account sharing and its advertising-supported service tier. Those initiatives should drive increased subscriptions, sales and earnings, she said in a report.
In a note to clients, Morris said, "We continue to see underappreciated opportunity in Netflix shares over the next 12 months even after year-to-date outperformance."
He added, "The company's position as the global leader in high-quality, long-form streaming video will drive further financial upside through higher subscription ARPU (average revenue per user), advertising revenue, and margin expansion."
On May 18, Netflix stock broke out of a cup-with-handle base at a buy point of 349.80, according to IBD MarketSmith charts. However, on Friday, Netflix shares reached the 20%-to-25% profit-taking zone, based on IBD trading guidelines.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
