Will Netflix Stock Go to $700? One Wall Street analyst thinks so.

It is not uncommon for analysts to adjust their assessment of a public company in the days leading up to the release of its financial results.Netflix (NASDAQ: NFLX)And so it is. The company will announce its first-quarter results after the close of business this Thursday.

A forecaster at one of the more influential start-up investment banks has raised his price target for Netflix significantly, a move that has undoubtedly attracted the attention of many Netflix investors. Here's a quick look at his new take on the stock.

A glorious history and a future full of opportunities

Less than a week before Netflix releases its quarterly numbers.Morgan Stanley (financial services company)Analyst Benjamin Swinburne made the move. He now sees Netflix's stock valued at $700 per share, which is an easy upgrade from his previous level of $600. He maintains a Hold (i.e., Buy) recommendation on the stock.

Swinburne is encouraged by Netflix's history, pointing out in his latest research note that the company has made a number of skillful transformations throughout its history (most notably from a DVD-reading service to a streaming video giant).

The company's future also looks promising, according to the analyst. Swinburne writes that the company has several promising revenue streams in front of it. These include advertising, live streaming and video games. He believes that these opportunities could lead to a compound annual growth rate (CAGR) of more than 25% in the company's earnings per share.

Continued rebound

As a major entertainment company, Netflix had two consecutive quarters of subscriber decline in 2022, but since then, Netflix has been a huge success.

Since then, however, it has recovered from those setbacks, and the lineup of exclusive content continues to grow. On top of that, Swinburne points out, the company can develop new, potentially strong revenue streams. For that reason, his optimism about the stock is justified.

Should you invest $1,000 in Netflix right now?

Consider this before buying shares of Netflix:

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Eric Volkman does not own any of the aforementioned stocks.The Motley Fool has a position in Netflix and recommends Netflix.The Motley Fool has a disclosure policy.

Will Netflix Stock Go to $700?1 Wall Street Analyst Thinks So. was originally published by The Motley Fool.