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(Reuters) – Shares in Netflix Inc neared a record high on Tuesday after the online video streaming service reported a rise in subscriber additions for the fourth straight quarter.
The shares rose more than 7 percent in premarket trading as at least 12 brokerages raised their price targets for the stock. Analysts at JP Morgan were most bullish, upping their target to $385.
The company’s shares, which have gained 60 percent this year to become the top performer on SP 500, were last up 7.5 percent at $330.75. The stock reached a record high of $333.98 last month.
“Netflix’s content strength and the global, secular shift to internet entertainment are driving subscriber upside,” JP Morgan analyst Doug Anmuth wrote in a note.
The company added 1.96 million subscribers in the United States and 5.46 million subscribers in its international markets in the second quarter, beating analysts’ average expectations.
“We believe the breadth of Netflix’s content offering is paying dramatic dividends in terms of subscriber adds and retention,” RBC Capital Markets analyst Mark Mahaney wrote.
Netflix’s plans to invest around $8 billion on content this year.
Analysts said the company was also benefiting from its wide range of agreements with wireless carriers and internet service providers, who are bundling Netflix streaming into their service offerings.
In the United States, T-Mobile, Verizon FiOS, Altice USA’s Cablevision, Cox Communications and Comcast Corp offers Netflix subscriptions. Netflix has similar deals with Proximus in Belgium and SFR Altice in France.
“While these offerings so far are most prevalent in mature markets, leading to a lower Netflix average selling price and also lower churn, partnerships could also become more important in emerging markets,” Canaccord Genuity analyst Michael Graham said.
Out of the 46 analysts that cover Netflix’s stock, 26 now rate it at “buy” or higher, 17 at “hold” and 3 at “sell” or lower. The median price target for the stock was $342.50.
Reporting by Laharee Chatterjee and Jasmine I S in Bengaluru; editing by Patrick Graham