Netflix stock rallied Tuesday after a Wall Street analyst raised his price target on the streaming video leader.
Evercore ISI analyst Mark Mahaney reiterated his outperform rating on Netflix stock and upped his price target to 750 from 710.
On the stock market today, Netflix stock rose 1.1% to close at 695.72. Earlier in the session, it climbed as much as 2.8% to 707.79.
On Aug. 20, Netflix shares hit a buy point of 697.49 out of a cup base, according to IBD MarketSurge charts. However, Netflix retreated modestly from the 5% buy zone over the next four trading sessions. It returned to the buy zone on Tuesday but ended the regular session just below it.
"Netflix is in the strongest position financially, fundamentally and competitively that we have ever seen," Mahaney said in a client note. "And we see with Live Events and Gaming two very promising long-term greenfield revenue opportunities."
Mahaney said he raised his price target on Netflix stock based on his firm's consumer surveys and other analysis. Netflix service rates highly for customer satisfaction and low churn intent vs. competing services, he said.
Netflix Stock Is On Two IBD Lists
Elsewhere on Wall Street, BofA Securities analyst David Tinsley issued a cautionary note on the streaming entertainment market.
"Spending on streaming services appears to have topped out," Tinsley said in a report Tuesday. "And the growth in households paying for services has slowed."
Competition between streaming services might heat up, given the maturing market, he said.
Meanwhile, Netflix stock is on two IBD lists: the IBD 50 and SwingTrader.
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