What happened

Shares of Netflix (NFLX -0.08%) jumped higher on Tuesday morning, thanks to a bullish analyst update. The early gains peaked at 10:20 a.m. ET, when Netflix stock traded 5.3% above Monday's closing price.

So what

Daiwa Capital Markets upgraded Netflix stock from a neutral rating to an outperform grade. Daiwa analyst Satoshi Tanaka also boosted his target price on the stock from $226 to $330 per share. The new target represents a 17% premium over last-night's final price point and an 11% upside from Tuesday morning's peak reading.

The firm hasn't published a detailed explanation of the logic behind this upgrade. However, Netflix posted robust earnings last week, exceeding analyst estimates by 1% on the revenue line and by 45% in earnings. The company also added subscribers after two straight quarters of sinking customer tallies, and the report also outlined Netflix's ad-supported service and password-sharing crackdown plans in greater detail.

It's safe to assume that Mr. Tanaka saw increased value in Netflix, thanks to a combination of these positive developments.

Now what

At least 12 analyst firms raised their Netflix price targets right after last-Tuesday's third-quarter report. Three or more firms also boosted their actionable ratings that day. Even the Netflix bears at Pivotal Research and Benchmark lifted their target prices, though their sell ratings stayed in place.

That being said, Netflix isn't out of the woods yet. The stock still trades 57% lower on a year-over-year basis, and that's after rising 80% above early-May's 52-week lows. Moreover, Daiwa Capital Markets' target is among this stock's most generous price estimates right now, and even that lofty mark sits more than 50% below last-November's all-time highs.

NFLX Chart

NFLX data by YCharts.

These low prices are there for the taking even as Netflix is evolving its business strategy in a more profitable direction. If you're not a buyer of Netflix shares these days, I don't know what it would take to bring you there. I have added to my own Netflix holdings several times in recent months and am tempted to do it again. This stock is an obvious buy right now.