Netflix: shares rise after UBS upgrade

(CercleFinance.com) - Shares in Netflix were up 1.
9% at 330.7 dollars in early morning trading on Wall Street on Friday after UBS upgraded its rating on the stock from "neutral" to "buy".

The broker also slightly raised its target price for the stock from 400 dollars to 410 dollars previously.

"After six months of stock underperformance and key debates emerging about competition, margins and free cash flow, we think these debates are better understood by investors and reflected in the current stock price," UBS wrote in a note.

Over the near-to-medium term, the broker said it sees upside in subscriber growth. Over the longer term, the video-on-demand service should be able to achieve a higher margin trajectory than currently expected by the market - with content spend now at a scale of the major media companies and titles continuing to demonstrate marketplace success, it said.

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