Netflix Inc. (NFLX) rose after BTIG Research initiated coverage of the video-streaming service with a buy rating and a $250 price target, saying subscriber growth and profitability will exceed expectations in the coming years.
Netflix, based in Los Gatos, California, climbed 1.9 percent to $176.50 at the close in New York. The shares advanced 91 percent this year, compared with an 8.8 percent increase for the Standard & Poor’s 500 Index.
The company will benefit from improving bandwidth for streaming movies and television shows, slow-moving competition and increasing content leverage, Richard Greenfield, an analyst with BTIG Research, wrote today in a note.
“Netflix is set to benefit from the perfect storm of catalysts,” Greenfield wrote.
Netflix Chief Executive Officer Reed Hastings said subscribers had watched over 4 billion hours of content since January, according to an April 11 posting on his Facebook page. The company is scheduled to report first-quarter earnings on April 22.
To contact the reporter on this story: Cliff Edwards in San Francisco at firstname.lastname@example.org
To contact the editor responsible for this story: Anthony Palazzo at email@example.com