Netflix (NASDAQ:NFLX) stock rose on Tuesday morning after a positive analyst report. The early gains peaked around 10:20 a.m. ET, when Netflix stock (NASDAQ:NFLX) was trading 5.3% higher than the previous day’s closing price.
What Happened to Netflix Stock
Netflix stock (NASDAQ:NFLX) was raised from a neutral recommendation to an outperform grade by Daiwa Capital Markets. Satoshi Tanaka, a Daiwa analyst, raised his target price for the company from $226 to $330 per share. The revised goal implies a 17% premium over yesterday night’s closing price and an 11% increase over Tuesday’s top reading.
The company has not thoroughly explained the reasoning for this change. On the other hand, Netflix reported strong results last week, outperforming analysts by 1% in sales and 45% in profitability. The firm also gained customers after two consecutive quarters of declining user counts, and the report went into further information about Netflix’s ad-supported service and password-sharing enforcement plans.
Mr. Tanaka’s worth on Netflix stock (NASDAQ:NFLX) is likely to have improved due to a combination of these good factors.
What Now?
At least 12 analyst firms upped their Netflix stock (NASDAQ:NFLX) price estimates immediately after the company’s third-quarter results on Tuesday. On the same day, three or more businesses increased their actionable ratings. Even Netflix bearish Pivotal Research and Benchmark raised their target prices while maintaining their sell recommendations.
However, Netflix is not yet out of the woods. The stock (NASDAQ:NFLX) is still 57% weaker year over year after surging 80% above its 52-week lows in early May. Furthermore, Daiwa Capital Markets’ objective is among the most generous price projections for this company right now, and even that lofty figure is more than 50% below last November’s all-time highs.
These inexpensive costs are available even as Netflix’s business plan evolves in a more lucrative path. If you aren’t already, I’m not sure what it would take to get you to purchase Netflix stock. I’ve increased my Netflix subscription multiple times in recent months and am inclined to do so again. This stock is a clear buy right now.
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Author Okoro Chinedu 
