Netflix shares gain the most in 20 weeks on Tuesday, Loop Capital Markets upgrades stock to “Buy” on “unstoppable lead in subscription video streaming”

Earlier this week Loop Capital Markets raised its rating on Netflix Inc (NFLX) from “Hold” to “Buy”, since the digital media company has achieved a tremendous lead in subscription video streaming.

Loop Capital Markets has also assigned a 12-month price target of $425 on the stock.

Netflix shares closed higher for the sixth time in the past eleven trading sessions on NASDAQ on Tuesday. It has also been the sharpest daily surge since January 15th. The stock went up 4.98% ($16.77) to $353.40, after touching an intraday high at $353.57, or a price level not seen since May 30th ($354.21).

Shares of Netflix Inc have risen 32.03% so far in 2019 compared with an 11.82% gain for the benchmark index, S&P 500 (SPX).

In 2018, Netflix Inc’s stock went up 39.44%, thus, it again outperformed the S&P 500, which registered a 6.24% loss.

“We continue to think that NFLX has built an unstoppable lead in subscription video streaming and the margin opportunity is expanding as it increasingly becomes content producer, distributor and retailer,” Loop analyst Alan Gould wrote in a client note, cited by CNBC.

The firm noted that there was a “structural difference” to Netflix’s advantage in comparison with that of cable networks or its digital rivals. According to Loop, Netflix has a “combination of content production, aggregation and distribution”, which “should lead to a greater share of the value chain and ultimately higher margin for streamers that achieve massive scale.”

According to CNN Money, the 34 analysts, offering 12-month forecasts regarding Netflix Inc’s stock price, have a median target of $423.28, with a high estimate of $500.00 and a low estimate of $183.00. The median estimate represents a 19.77% upside compared to the closing price of $353.40 on June 4th.

The same media also reported that 25 out of 40 surveyed investment analysts had rated Netflix Inc’s stock as “Buy”, while 11 – as “Hold”. On the other hand, 2 analysts had recommended selling the stock.

Weekly Pivot Levels

By using the traditional method of calculation, the weekly levels of importance for Netflix Inc (NFLX) are presented as follows:

Central Pivot Point – $349.13
R1 – $355.35
R2 – $367.41
R3 – $373.63
R4 – $379.84

S1 – $337.07
S2 – $330.85
S3 – $318.79
S4 – $306.72