Investors should buy Netflix shares on the prospect of strong subscriber growth in the coming year, according to Mizuho Securities, which raised its rating on the streaming giant to buy from neutral.
"We believe there is material room for international subscriber growth and contribution profit growth, even without material gains in Asian markets," analyst Neil Doshi wrote in a note to clients Monday. "Furthermore, we like the moats around original content, and as cord-cutting increases, we see NFLX as a beneficiary. We like the setup for 2017 and beyond."
Netflix will report fourth quarter financial results on Wednesday, according to its website.