International growth is going to be a catalyst for shares of Netflix, Inc. (NASDAQ:NFLX). That’s the assessment of Guggenheim Securities, which has just raised its price target for the streaming giant.
CNBC shares the firm’s take on Netflix.
Guggenheim Securities believes Netflix shares will go higher due to its rising international streaming business.
The firm raised its price target to $420 from $360 for Netflix shares, saying the company’s locally-produced content offerings will spur demand in India. Guggenheim Securities also reiterated its buy rating for the company.
Analyst Michael Morris predicts that Netflix will have 5.5 million subscribers in India by 2020. He shared additional perspective in a note to clients.
“We believe that Netflix subscriber penetration will significantly exceed what is implied in the company’s current valuation,” he wrote. “We expect the 3Q launch of original local-market content in India, upgrades to user experience and consumer products development to support share appreciation.”
Netflix, Inc. shares rose $5.57 (+1.52%) in premarket trading Wednesday. Year-to-date, NFLX has gained 93.95%, versus a 9.80% rise in the benchmark S&P 500 index during the same period.