Netflix stock surges following bullish analyst outlook

Canaccord Genuity has predicted that recent concerns that a drop in subscriptions would lead to a further fall are premature.

Michael Graham, an analyst for Canaccord, began coverage with a buy rating and stock price target of $120, 25% higher than their current price.

Strong growth returns should be expected in the fourth quarter and for much of 2018, according to Graham.

"With vast potential in the other 179 markets and the potential to move from a top-of-market skim product to more of a mass-market product internationally, we see a long runway for growth," a note to clients read.

"In the U.S., competitive offerings will proliferate, but in a new un-bundled OTT world..., Netflix should move from being a substitute good to a complimentary good relative to cable, and this should foster continued growth domestically."

Netflix is still down 16% this year to date, but various analysts see Netflix as a long-term grower, despite its well-known status as a volatile stock.