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Netflix could hit $1,400—here's why: Cowen trader

Netflix stock hit an all-time high on Friday, soaring above $630 a share. It has now rallied 85 percent on the year, but according to one top trader, the rally has only just begun.

"I think Netflix is on the way to $1,400 a share in five years," Cowen and Co.'s head of sales trading, David Seaburg, proclaimed Friday on CNBC's "Trading Nation." A move to $1,400 would more than double the current price of the stock.

And according to Seaburg, the catalyst could come from overseas growth. "You see the stock really started to pop when Netflix began talking about international expansion," he said. "International growth for Netflix is really the story here."

Seaburg expects Netflix to end next year in roughly 200 markets. "That's a massive move higher. The opportunity that exists here is huge." To note, Netflix currently has roughly 62 million subscribers. Seaburg sees that number rising to at least 150 million over the next five years.

What makes the stock even more attractive to Seaburg is that the company has substantial pricing power against competitors.

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"Currently Netflix charges $9.99 a month versus HBO, which is $15 a month," he said. "They could probably move it to $12 a month over the next five years and I think that's a reasonable number to get to."

Bear minimum, said Seaburg, "the company has 150 million subscribers by 2020 and the stock goes to $1,400."

To be sure, not every analyst on Wall Street is as bullish as Seaburg. Of the 41 analysts that cover the stock, the average rating is "overweight" and the average price target is $587.18, according to FactSet.

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