In a report published Thursday, Citi analysts maintained their Buy rating onNetflix, Inc.NFLX
, while raising the price target from $584 to $722. The company's share price has surged 31 percent following its earnings report on April 15. The analysts believe there is further upside to the stock and that the company's international opportunity is current underappreciated. According to the Citi report, "[I]nvestors are giving the company little credit for the Western European markets launched in late 2014 and the new markets in 2015 (Australia, New Zealand, Japan)." In addition, markets that are culturally similar to the U.S., such as Canada, UK and Ireland, are currently valued at a meaningful discount to the U.S. The company has also not been receiving the deserved credit for new market entries in the future, despite the management having announced its plans to enter new global market by the end of 2016, including China. "Near-term performance will be determined by Q2 net adds, and perhaps even more so by the Q3 guide. With that in mind, we view consensus estimates for 3Q net add as reasonable relative to guidance," the analysts added.
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