UBS hikes Netflix price target ahead of earnings, says shares can jump nearly 20%

Investors can expect a strong showing for Netflix during earnings season, UBS said. Analyst John Hodulik hiked his price target on Netflix to $525 per share from $390 ahead of its second-quarter results next week , forecasting a rosy report that will indicate accelerating growth in the second half. The new target implies upside of 19.3% from Tuesday's close. Netflix shares rose 0.6% in the premarket. NFLX 1D mountain Netflix shares 1-day "We are raising estimates following positive data on paid sharing. Checks on engagement, downloads & search interest were all constructive for the newly launched paid sharing markets," Hodulik wrote Tuesday. "Along with better FX, we expect 2Q to beat mgmt's guide (UBSe 5% rev/4% OI growth; prior 4%/2%) and still expect accelerating 2H growth." Netflix shares are already outperforming this year, up nearly 50%. However, the analyst's rosy outlook stems from the introduction of paid sharing on the platform, which he says has shown positive growth and con