Shares of Netflix (NFLX - Free Report) were up more than 3.3% in afternoon trading Wednesday after a key analyst downplayed the significance of Disney’s (DIS - Free Report) decision to pull its content from the video streaming platform.
In a recent note to clients, Bernstein’s Todd Juenger argued that the key to Netflix’s continued growth will be the continued expansion of its international business—an area in which Disney is not a factor.
“Almost all of Netflix's future growth will come from international … Investors who were already skeptical (or bullish) on int'l growth will remain so – but Disney's U.S. non-renewal should have no effect on that view,” Juenger wrote.
Disney movies are currently available on Netflix in the U.S., Canada, and just two other countries. “"In the U.S., recent news flow has, if anything, made us more bullish,” the analyst added.
Bernstein reiterated its “overweight” rating for Netflix, and Juenger raised his price target for the stock to $203—a 20.3% premium to Tuesday’s close.
After opening at $169.50 per share, Netflix steadily climbed higher throughout the day Wednesday, eventually hitting an intraday peak of $174.77 in afternoon trading. As of right now, the video streaming company remains a Zacks Rank #3 (Hold).
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