Scope remains for Netflix to boost international subscribers by 50%

Netflix benefited from an upbeat analyst research note Wednesday. GBH Insight's analyst Daniel Ives reiterated the firm's 'highly attractive' rating.

Scope remains for Netflix to boost international subscribers by 50%

It appears Netflix remains a top pick for analysts at GBH Insights after a research note reiterated a rating of ‘highly attractive’ for the online streaming service. Netflix shares closed little changed Wednesday, up just 0.05% at $196.32.

GBH Insights analyst Daniel Ives issued his latest Netflix research note Wednesday, which was positive on the outlook for the business over the next few years.

Netflix outlook details

The note comes during a period of volatility for Netflix shares. Investors haven’t always been positive on Netflix since its upbeat third-quarter earnings report. The Netflix share price is currently almost $4 lower than its recent peak of $200.13. But, it’s still some $4 higher than it was a month earlier.

“We believe Netflix has a number of growth levers which should fuel the company's next phase of strategic penetration among both US and especially international consumers," Ives said in the research note.

The analysts also wrote to clients saying the US-based streaming business could reach 90 – 100 million subscribers in the next three or so years. Netflix currently has around 60 million global subscribers.

Netflix confirms Deutsche Telekom deal

Underscoring Netflix’ international growth plans, the streaming service Wednesday confirmed a deal with Deutsche Telekom.

The agreement means subscribers in Germany, Poland, Croatia, Greece and Romania can watch Netflix online and on mobile devices.

“We want to ensure the best content offering and TV experience for our customers and will work with Netflix to further expand our great partnership”, said Thomas Kicker, Senior Vice President Group Partnering of Deutsche Telekom.

Netflix was equally positive on the agreement.

“This partnership builds on our already strong relationship with Deutsche Telekom. We are thrilled to open a new world of exclusive and critically-acclaimed entertainment for millions of Deutsche Telekom’s TV and Mobile customers in Europe,” said Netflix VP Business Development EMEA, Maria Ferreras.

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