Netflix (NASDAQ:NFLX) stock is in the news Friday after the video streaming service got a new upgrade from Loop Capital analyst Alan Gould.
That upgrade has the Loop Capital analyst bumping NFLX stock up from a “hold” rating to a “buy” rating. For the record, the analyst consensus rating for NFLX shares is a “moderate buy” based on 38 opinions.
In addition to this, Gould increased the firm’s price target for NFLX from $425 per share to $500. That represents an almost 23% potential upside for the stock over the next 12 months. Additionally, it’s a bullish price prediction next to the analyst consensus of $428.62 per share.
What’s Behind the NFLX Stock Upgrade?
According to the Loop Capital analyst, there are a few reasons that Netflix is set for success over the next year. That includes its ability to better withstand the ongoing writer and actor strike. This is due to the streaming company’s collection of still unreleased content.
To go along with that, Gould also believes the ongoing strikes will benefit streaming services. He claims that the strikes will further the fall of traditional TV. Netflix is also set to benefit from this as rival streaming services increase prices while reducing content spending.
Following today’s upgrade, shares of NFLX stock are up 2.2% this morning. Investors will also note that the streaming company’s shares are up 41% since the start of the year.
Investors seeking out even more of the most recent stock market news are going to want to keep reading!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
