Netflix Inc.'s stock rallied 0.9% in premarket trade Friday, after Deutsche Bank upgraded the streaming video service, citing expectations that Netflix will report better-than-expected results next week. Analyst Bryan Kraft raised his rating to hold, three months after starting coverage with a sell rating. He raised his stock price target to $110, but that was still 15% below Thursday's closing price of $129.18, from $92. Kraft said when he initiated coverage of Netflix, he believed the company had "an attractive business model," but the stock was priced two years ahead of the fundamentals, and that a sale of the company was "highly unlikely." His new rating and price target is based on a higher subscriber trajectory internationally, a lower tax rate and the believe that fourth-quarter results will beat guidance for international subscribers. "The key driver of the stock price around earnings reports has predominantly been subscribers," Kraft wrote in a note to clients. Netflix is scheduled to report results after the market closes on Jan. 18. The stock has run up 29% over the past three months, while the S&P 500 has gained 6.5%.
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