Netflix shares closed higher in the US Monday, after analysts at Jefferies raised its price target on the stock to $320. That follows news that late last week a different financial services firm upgraded its rating for the TV streaming giant, to ‘buy’ from ‘neutral’.
The streaming service has also begun testing running ads between its episodes, to help share more of its shows with subscribers.
Netflix shares ended the US Monday trading session 3.46% higher at $327.73. The stock is also a little higher in after-hours activity.
Analysts upbeat on Netflix stock
While the new price target from Jefferies Financial Group was surpassed by the stock price at Monday’s close, it highlights that analysts remain positive on the stock, despite it disappointing with its latest user growth figures.
Netflix said in its latest earnings report that it achieved 5.2 million new users in the second quarter. While that was the same increase reported a year earlier, it was below Netflix’ own forecast for user growth of 6.2 million during the period.
Indeed, in recent weeks, other analysts have also been more positive on the stock.
Macquarie analysts set a $388.00 price target for Netflix, complemented with a ‘buy’ rating. Meanwhile, Robert W. Baird re-stated its ‘neutral’ rating on the company and gave it a $370.00 price target.
Netflix ad test
In addition to the recent wave of positivity on the stock, Netflix has begun testing running ads, or promos, for its other shows in between episodes. The move comes as the tech firm works to promote its growing variety of shows to its subscribers.
“We are testing whether surfacing recommendations between episodes helps members discover stories they will enjoy faster,” Netflix said in a statement given to website Cord Cutters.
While some users who have encountered these ads haven’t been particularly positive about it, subscribers can opt out of the test.