Netflix shares will get a boost from international growth during streaming wars: Pivotal Research

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Pivotal Research bumped up its Netflix price target on Thursday, saying that the streaming service's "international growth story remains compelling."

Netflix shares rose 3.6% in trading to close at $332.22.

"The more in-depth international disclosure gave us greater confidence in our overall forecasts, highlighted by an increase in our terminal year total subscriber forecast of 25 million to 375 million [by 2027] and forecasting [average revenue per user] trends," Pivotal analyst Jeffrey Wlodarczak said in a note to investors.

He forecast Netflix's fourth quarter will see it add 600,000 U.S. subscribers and 8 million international subscribers, with the latter strongly above the company's forecast of 7 million new subscribers.

Pivotal increased its price target to $425 a share from $400 a share, making it one of the most bullish firms on the stock. Despite recent competitive pressure, Wall Street has largely stuck by Netflix, as only only there are only three sell ratings out of the about 40 analysts covering the stock according to TipRanks.