There’s still more room to run for Netflix after the company’s blockbuster fourth-quarter report, according to Bernstein. The firm upgraded the streaming giant to outperform from market perform and raised its price target to $1,200 per share from $975. Bernstein’s forecast implies nearly 22% upside from Thursday’s close. Netflix this week reported strong fourth-quarter results , with paid subscribers topping 300 million and earnings and revenue beating expectations. “There are more questions than answers about the key drivers of long-term growth for Netflix (e.g., sports, advertising, gaming (?)), but what we do know gives us sufficient confidence for a much-delayed upgrade, even at the current price point,” wrote analyst Laurent Yoon. The analyst added that despite a growing field of competition in streaming, a potential rebound in the advertising market could help Netflix supplement its growth runway. Specifically, he noted that “Netflix has recently proven to be a credible destination” for live events and the advertising opportunities they bring. Bernstein only the latest firm to upgrade Netflix following this week’s report. Canaccord Genuity raised its rating on the stock to buy from hold, while Barclays moved to equal weight from underweight . Wolfe Research also shifted its rating to outperform from market perform. “While premium valuation gives pause, our expanded valuation comparison analysis demonstrates the scarcity and preciousness of Netflix-like growth, scale and profitability,” Wolfe analyst Peter Supino wrote. Netflix shares have soared nearly 15% this week, putting their 12-month gains at a whopping 80.7%. NFLX 5D mountain NFLX 5-day chart
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