Brean Capital's Alan Gould, one of the Wall Street's top analysts, initiated coverage on Netflix shares with a buy rating, citing the streaming video company's long-term growth potential due to its content spending dominance.
"We believe NFLX has created an unstoppable lead in the internet TV business and is positioned to dominate the business long term," Gould wrote in a note to clients Monday.
"It is on a path to become the largest spender on entertainment content creating a content moat and amortizing it over a global direct-to-consumer audience making it the low cost producer."
Gould's picks have a 9 percent one-year average return and an 89 percent success rate for a profit, according to analyst ranking service TipRanks. That places him in the top 13 percent of all Wall Street analysts covering any industry.
