Netflix Moves Higher on Bullish Note From Bank of America

Shares of Netflix soared higher on Wednesday after Bank of America Merrill Lynch raised its price target on the stock from $352 to $460 and reiterated a “buy” rating.

According to the bank, the streaming giant will see 360 million subscribers by the year 2030.

Citing the strength of Netflix’s original content library, analyst Nat Schindler wrote, “We think Netflix can become the dominant streaming player in virtually all markets given its content scale, despite varying levels of competition, regulation, and economic conditions in each market.”

In a note titled, “Still more upside for the new king of all media,” the analyst also said, “Netflix continues to benefit from strong execution and favorable secular trends as the transition to internet video accelerates globally, and strong demand for premium on-demand content continues.”

He also wrote, “Netflix continues to build its original content library, which will be an important asset as more competitors bring direct-to-consumer offerings to market. A stronger original content library supports longer-term pricing power.”

The stock saw gains of 2.6% on the price target increase.

Netflix is the second best-performing stock in the S&P 500 this year and has seen its shares soar over 100%.

Disclaimer: We have no position in Netflix, Inc. (NASDAQ: NFLX) and have not been compensated for this article.