Reed Hastings, CEO of Netflix.
Mark Neuling | CNBC
Investors should buy Netflix shares due to the streaming company's impressive customer retention rate in the face of price increases, according to Piper Jaffray, which reiterated its overweight rating.
The firm asked 1,500 U.S. Netflix subscribers about the potential impact of the $2 price increase announced in 2014, which hits customers this year.
"Based on our survey, we believe un-grandfathering of subscribers on a lower priced subscription will have minimal impact on the overall sub base," Piper Jaffray's Michael Olson wrote in a note to clients Tuesday. "Regarding future price increases, while we wouldn't expect another domestic price increase in the next two years, it appears Netflix has runway to push pricing higher."
