Netflix Inc. (NASDAQ: NFLX) surged this morning in the wake of Citigroup analyst Mark Mahaney late Tuesday reiterating a Buy rating.
Reasons for the rating included “a highly reasonable valuation, a generally positive execution track record, and the still early market opportunity for Internet video streaming.”
According to a Citigroup proprietary survey, for the first time since last summer, the number of consumers who are very or extremely satisfied with the company has begun to increase. Furthermore, the number of respondents who listed Netflix as a top destination also rose.
Netflix is scheduled to post third quarter results on October 23. The consensus forecast calls for a steep decline in earnings per share, compared to a year ago, but an increase in revenue of about 10%.
Mahaney maintains a Buy rating on the shares with a price target of $120.
Shares traded up more than 7%, as high as $60.84, in morning trading. The 52-week range is $52.81 to $133.43. The mean price target is $73.96.