Here’s why Netflix (NFLX) is emerging today

Shares of the video streaming giant traded on Monday Netflix Inc.NFLX are increasing, up approximately 1.7% to $141.52 after the upgrade and target price increase.

UBS upgraded Netflix from Neutral to Buy, raising their price target to $175.00 from $136.00. Analyst Doug Mitchelson believes the company could see subscriber growth this quarter thanks to growth in Europe and Latin America and slight improvement in Japan.

Mitchelson said in the note that: “It is worth noting that this momentum is in the first quarter of 2017, when original content publications are low, and the growth in the first quarter of 2017 has been delayed to the fourth quarter on a management basis due to good original results in the fourth quarter of 2016.” He also commented on the success of Netflix’s integration with Comcast’s CMCSA X1 set-top box, but noted a concern worth considering: the possibility of a rollback of net neutrality rules by the newly formed Republican Federal Communications Commission.

“Netflix is ​​certainly well-liked and is not cheap, but we see the potential for Netflix to exceed Street subscriber growth expectations and believe concerns about competition and content costs are unfounded,” Mitchelson continued.

NFLX is currently sporting a Zacks Rank of #2 (Buy) and has gained 12.39% year-to-date.

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