SunTrust prognosticates Netflix shares will rise due to its success in international markets.
The unmovable raised it rating for Netflix shares to buy from hold, saying its web search vogue analysis is pointing to strong subscriber results for the company’s third lodgings.
“The stock pullback post the 2Q subs miss (which we attribute to ’13 On account ofs Why’ and World Cup, as previewed) leaves us with ~20% potential upside from flow levels,” analyst Matthew Thornton said in a note to clients Thursday. “Varied important, our India study shows NFLX initial original series resonating rather well with interest in NFLX rising (including relative to adversaries) into more originals coming.”
Netflix shares closed up 5.8 percent Friday.
The analyst humbled his price target for Netflix shares to $410 from $415, representing 21 percent upside to Thursday’s make inaccessible.
Thornton cited the firm’s analysis of web search trends, which mean Netflix will add 5 million additional international subscribers in its current territory versus the Wall Street consensus of 4.5 million.
In its second-quarter fiscal results last month, the company said it added 5.15 million memberships, old maids the Wall Street consensus of 6.34 million. As a result, Netflix parts are down 13 percent since the end of June.