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CEO and founder of Netflix, Reed Hastings
Joan Cros Garcia | Corbis | Getty Images
Netflix shares were strengthened to become shares held by Loop Capital Markets, which announced that the shares of the digital media company are expected to rise by more than 25%.
"We continue to think that NFLX has built an unstoppable lead in subscription video streaming and that margin opportunities are growing as it becomes a producer, distributor and retailer of content," said Alan Gould, Loop Analyst. , in a note to investors. Gould noted that the rating upgrade comes as Loop has added to the company's team, Internet sector badyst Rob Sanderson.
According to Mr. Loop, there is a "structural difference" in the benefit of Netflix over cable networks or digital competitors. Netflix has a "combination of content generation, aggregation and distribution" which should lead to a larger share of the value chain and, ultimately, a higher margin for streamers that reach a very large scale ".
Netflix shares rose 3.3% in early trading on Tuesday against Monday's close of $ 336.63 per share. Equities are down 12% in the last month in a context of a larger downturn in the market. The loop has a target price of $ 425 on Netflix shares.
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