Netflix shares reached an all-time high in trading Tuesday, crossing the $400 threshold for the first time in company history after several Wall Street firms provided a bullish outlook for the booming streaming service.
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GBH Insights raised its price target to $500 from $400, the highest such figure on Wall Street. The firm said Netflix holds a position of “iron-like strength” among streaming services and is poised to expand its subscriber base despite potential competition from Disney and Comcast, which are locked in a bidding war to acquire Fox television and film assets.
“Our bullish thesis on Netflix is based on our belief that the company’s competitive moat, franchise appeal, ability to increase international streaming customers through 2020, and original content build out will translate into robust profitability and growth as the next phase of this story plays out over the coming year with $10 of earnings power by 2022,” GBH Insights head of technology research Daniel Ives wrote in a note.
Netflix shares rose 3% and were trading above $403 as of Tuesday afternoon. The company’s stock has risen more than 100% so far this year.
Piper Jaffray raised its price target for Netflix to $420 from $367, citing data that suggests the streaming giant is poised for massive international subscriber growth in its second quarter.
Netflix would achieve its 32nd record close of 2018 if it finishes the day of trading above $392.87.