What happened
Shares of Netflix (NFLX -3.92%) rose as much as 5.4% on Wednesday, setting new all-time highs in the process. The video-streaming veteran's stock price was boosted by bullish actions from two analyst firms.
So what
Canaccord Genuity analyst Michael Graham reiterated his "buy" rating on Netflix shares and raised his price target from $500 to $550. Bank of America Merrill Lynch added the stock to its "U.S. 1" list of top-quality investment ideas. Further details on these analyst reports were not available at press time.
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Now what
Canaccord set the highest price target on Netflix among 65 firms providing coverage on the stock, ahead of a $535 target suggested in a Cowen & Co. report yesterday. In that note to investors, Cowen analyst John Blackledge based his bullish conclusion on strong results in the firm's proprietary consumer survey.
"With many consumers continuing to stay home and limiting outdoor social activities amid uneven reopenings, Netflix engagement has likely remained high," Cowen said. The firm's survey data supported strong subscriber additions in the upcoming second-quarter report as well as enough pricing power to launch another round of price increases in the wake of the COVID-19 pandemic.
Canaccord and Merrill's reasoning most likely runs along similar lines, though they will be backed by different data collections.
