Netflix stock received a pair of price-target increases on Wednesday ahead of the streaming video leader's fourth-quarter earnings report next week.
BofA Securities analyst Jessica Reif Ehrlich raised her price target on Netflix stock to 585 from 525 and maintained her buy rating.
KeyBanc Capital Markets analyst Justin Patterson increased his price target on Netflix to 545 from 525 and kept his overweight rating.
On the stock market today, Netflix stock dipped 0.2% to close at 480.33.
Crowning The King In Streaming
In a client note, Reif Ehrlich dubbed Netflix "the king in streaming."
"Netflix has won the 'streaming wars,' " she said, noting that some media companies have pulled back from the market.
"Over the last 18 months, changing market dynamics, investor focus on profitability, and the various talent strikes have led several media companies to re-evaluate their streaming aspirations," she said. Those companies have reduced their content spending and increased their licensing of content to Netflix and others.
"These changes have been a tacit acknowledgement that not all media companies will be able to achieve Netflix's global reach and scale in streaming," she said.
The less-competitive market will allow Netflix to focus on improving its efficiency, Reif Ehrlich says.
Advertising Growth Positive For Netflix Stock
KeyBanc's Patterson says he's incrementally more positive on Netflix's prospects thanks to the growth of its advertising-supported service offering.
Last week, Netflix announced that it had reached 23 million monthly active users for its ad-supported service. That's up from 15 million in November and 5 million in May.
Patterson also noted that subscriber growth "remains healthy."
Netflix stock is trading just below the buy point of its breakout last month. On Dec. 18, Netflix stock broke out of a 22-week consolidation pattern at a buy point of 485, according to IBD MarketSmith charts.
The Los Gatos, Calif.-based company will report its fourth-quarter results late Tuesday.
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