Guggenheim sees attractive shareholder returns from Netflix shares, hikes PT

Guggenheim on Friday maintained its “buy” rating on Netflix (NASDAQ:NFLX) but hiked the price target on the shares of the company.

They noted that NFLX shares are up 56% year-to-date compared to 22% for the benchmark S&P index, and continue to see attractive shareholder returns over the next 12 months, fueled by further global member growth potential, accelerating advertising revenue growth, and content engagement leadership.

Going into Q3 earnings, the research firm expects member trends to be the critical sentiment driver as the company continues to lap its initial password-sharing initiatives. They raised their member net adds estimate to 5.2M from 2.5M.

NFLX price target was raised to $810, from $735, implying an upside of 11%. Stock has a “buy” rating from SA analysts and Wall Street and a “hold” from Seeking Alpha Quant.