On Monday, shares of video streaming giant Netflix Inc. (NFLX Quick QuoteNFLX - Free Report) are popping, up around 1.7% to $141.52 after it received an upgrade and a price target increase.

UBS upgraded Netflix from Neutral to Buy, with a price target increase to $175.00 from $136.00. Analyst Doug Mitchelson believes the company could see strengthening subscriber numbers this quarter thanks to growth in Europe and Latin America and modest improvements in Japan.

Mitchelson, in a note, said that, “Notably, this momentum is during a 1Q17 stretch where original content releases are light and 1Q17 growth had been pulled forward into 4Q16 per management due to 4Q16's strong originals.” He also commented on the success of Netflix’s integration with Comcast’s (CMCSA Quick QuoteCMCSA - Free Report) X1 set top box, but pointed out a concern worth following is the potential for net neutrality rules to be rolled back by the newly Republican Federal Communication Commission.

"Netflix is certainly well-liked and not inexpensive, but we do see the potential for Netflix to exceed Street subscriber growth expectations and believe that concerns regarding competition and content costs are misplaced,” Mitchelson continued.

Currently, NFLX is a #2 (Buy) on the Zacks Rank, and has gained 12.39% year-to-date.

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