Shares of Netflix are heading higher based on a couple of strong catalysts, Mark Mahaney of RBC Capital Markets said Tuesday on CNBC.
"I think they've reached either a flywheel's moment or a critical mass moment," he said. "They are proving scale, growth and profitability. We think this sub-base can continue to rise."
On "Fast Money," Mahaney called Netflix stock a "buy" with a price target of $210 per share.
"There are some very thoughtful bear arguments on this stock," he added, noting that the company's management team has done "an outstanding job" from the perspective of a 10-year time frame – less so over the past couple of years.
Mahaney sounded bullish on the stock if the company could keep its net new subscribers at 5 million per year.
But his outlook also involved consumer behavior.
"The long-term thesis is that this could be an internet video utility," he said. "There's two great secular drivers behind the Netflix story today that's relatively new – the surge in internet-connected devices, tablets, smartphones, etc., and then rise in video viewing online.
"That's where people are switching their entertainment habits, away from the TV screen and toward these devices. Netflix is a great play off that. If that continues to play up, there's upside to that $210."
Trader disclosure: On March 5, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Joe Terranova is long VRTS; Joe Terranova is long SJM; Joe Terranova is long MJN; Joe Terranova is long AXP; Joe Terranova is long GPS; Joe Terranova is long KORS; Joe Terranova is long GS; Joe Terranova is long SWN; Mike Murphy is long GS; Mike Murphy is long F; Stephen Weiss is long SPY 147 APR PUTS; Stephen Weiss is long BAC; Stephen Weiss is long C; Stephen Weiss is long QCOM; Stephen Weiss is long M; Stephen Weiss is short JCP; Jon Najarian is long AAPL; Jon Najarian is long JPM; Jon Najarian is long WFC; Jon Najarian is long CSCO; Jon Najarian is long QCOM; Jon Najarian is long NFLX; Jon Najarian is long RDN; Jon Najarian is long AXP; Jon Najarian is long AMTD; Jon Najarian is long YELP; Jon Najarian is long SWN; Dan Nathan is short SPY; Dan Nathan is short QQQ; Dan Nathan is long AMZN APR 240/200/160 PUT FLY;
For Mark Mahaney
RBC Capital Markets, LLC makes a market in the securities of Netflix Inc. and may act as principal with regard to sales or purchases of this security.
