Netflix shares should jump roughly 40 percent in the next year, as more international subscribers than expected flock to its huge, diverse pipeline of programming, a key analyst predicted Wednesday,
Shares popped about 2 percent at $109.16 in early trade. In the last year, the stock has jumped about 60 percent.
“We do not believe studios will be able to starve Netflix of content at this point,” BTIG’s Rich Greenfield said in a note Wednesday. He added that studios are also under pressure as “bundling,” a practice that packages the desirable programming with the weak, continues to unravel. That makes it hard for studios to raise their licensing prices.