Netflix stock is in record-high territory but still has room to rise, a Wall Street analyst said Friday.
Pivotal Research Group analyst Jeffrey Wlodarczak reiterated his buy rating on Netflix and raised his price target to a Street-high 1,600 from 1,350.
On the stock market today, Netflix stock advanced 0.8% to close at 1,231.41. It hit an all-time high 1,262.81 on June 5 after the company's Tudum fan event.
Netflix stock is in the 20%-to-25% profit-taking zone following its spring breakout, based on IBD trading principles.
On April 21, Netflix stock broke out of a double-bottom base at a buy point of 998.70 after its first-quarter earnings report.
Pivotal's Wlodarczak said he has increased confidence in Netflix's dominant position in the subscription streaming video market.
"Our positive Netflix investment view remains unchanged," he said in a client note. "Netflix remains underpenetrated globally, offers an extremely compelling price-to-entertainment value (that is continually improving) boosted by their ad-supported offering."
He sees Netflix generating solid subscriber growth and improved revenue per user thanks to price hikes and its ramping advertising business.
Also Friday, Wells Fargo kept its overweight rating on Netflix stock and upped its price target to 1,500 from 1,222.
Last Friday, JPMorgan analyst Doug Anmuth maintained his neutral rating on Netflix stock with a price target of 1,220.
In a client note, Anmuth said Netflix shares are "well owned and the risk/reward is less compelling."
Netflix stock is on two IBD lists: Leaderboard and IBD 50.
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