Could India eventually be the crown jewel in Netflix's streaming empire?
It might end up that way, according to a report from Guggenheim analyst Michael Morris. On Wednesday, Morris raised his target price on Netflix's stock to $420 a share from $360 based in large part on the company's opportunity for growth in India.
In July, Netflix rolled out "Sacred Games," its initial, scripted local-market series in India, and is set to expand its content in the country in the third quarter this year. Morris said the Indian market "represents an under-appreciated long-term opportunity" for Netflix to increase its international subscriber base.
When Netflix reported its second-quarter results, in July, the company said it had 130.1 million total subscribers, with 72.8 million in international markets.
"We see improving broadband infrastructure and a growing population of upper-middle class smartphone users as an attractive addressable market," Morris said in his report. "Netflix is well equipped to capitalize in this region as a high-quality streaming consumer experience, in our view."
