Netflix shares hit a fresh record high in the US Monday, as two analysts upgraded their price target and general view of the stock’s outlook. An Oscar win for an original documentary also provided an additional, favourable take on the streaming service.
Netflix shares closed at a new high Monday, gaining 4.63% to hit $315.00. It has risen over 60% since the end of 2017 and the stock is also higher in pre-market trade, Tuesday.
Analysts at UBS and Macquarie both told clients of their Netflix upgrades in research notes Monday.
UBS raised its 12-month price target for the Netflix stock from $290 to $345.
“We believe Netflix's core competencies in both content and technology should drive a virtuous circle of greater subscribers and increased viewing time, enabling higher ARPU and revenue, which will fuel content spending to attract even more subscribers,” Eric Sheridan wrote.
Sheridan also said that Netflix original content has garnered the same level of interest as other well-known series. Specifically, the second series of Stranger Things gained more Google search traffic than every season of HBO’s Game of Thrones.
Macquarie, meanwhile, has a price target of $330 on the Netflix stock. Analyst Tim Nollen said that among the positives for the streaming service, was the move to upgrade older TV to new ones with HD capabilities.
“Netflix seems to have every secular trend in its favour,” Nollen wrote. “Another opportunity for Netflix is the proliferation of 4K ultra HD TVs and the replacement rate of older TV sets with this new definition standard globally,” he added.
Netflix’ Oscar win
Both analyst notes followed the news that an original Netflix documentary film won an Oscar, Sunday night.
Icarus is a documentary feature about the Russian Olympic athlete drug scandal. The win is the second for Netflix. It won its first for a documentary short, in 2014.