Netflix Shares Are Surging As Price Target Hits $160

Netflix Shares Surge

Netflix Inc. shares rose by 9.1 percent to an all-time high after an analyst at Guggenheim Securities recommended the stock with a price target of $160.

The company jumped by 8.6 percent to $122:27 right before 3PM and then jumped to a record $122.79 intraday.

Netflix is the top performing stock in the S&P 500, gaining 150 percent in 2015.

In a market recommendation Guggenheim analyst Michael Morris issued a $160 target for the 12-month period.

Netflix has been flying high thanks to a subscriber base that has grown to more than 65 million users, up 30 percent from the year prior.

“Netflix is based on a sound concept: Utilize improvements in technology to better entertain consumers in an efficient manner at an attractive price,” Morris wrote. “The stock’s performance has been very strong over the past two years, yet at $48 billion in market capitalization, we still see a significant gap between equity value and ultimate intrinsic value of the service.”

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Other analysts have combined to offer a $150 price target for the company’s stock.

Netflix Shares Are Soaring

Netflix has been attracting new customers by developing its own original TV shows and movies. TV show seasons are released in one upload, allowing customers to generate a ton of buzz for the company by binge watching popular shows such as House of Cards and Orange Is The New Black.

The streaming video service continues to expand its service into other countries, allowing for an international user base to be cultivated. The company’s stock split 7-for-1 last month. Netflix will start service in Japan on September 2.

The company plans to introduce service in more than 100 countries in 2016.