Hargreaves raised his price target to $270 from $230 for Netflix shares, representing 23 percent upside to Thursday’s close.
The analyst noted a recent report from the International Telecommunication Union that revealed broadband internet access was rising worldwide faster than expected. That makes Netflix’s potential market bigger and “prompts a corresponding increase to our estimates for Netflix’s international subscribers in 2018 and beyond,” Hargreaves wrote.
As a result, he increased his 2018 global net subscriber forecast for Netflix to 20.6 million from 19.3 million.
Hargreaves said Netflix’s large scale and content library will enable the company to beat its competition and produce subscriber growth and profitability “well ahead of current expectations.”
Netflix is one of the market’s best-performing stocks. Its shares have rallied 59 percent in the past 12 months versus the S&P 500’s 24 percent gain.