Netflix (NFLX, Financials) climbed to a record intraday high Tuesday before closing just below $1,218, after Jefferies raised its price target to $1,400. The new target implies a 15% upside from Tuesdays close and stands well above the $1,192 consensus.

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Jefferies reiterated its "buy" rating, pointing to sustained earnings growth, a robust 2025 content lineup, and accelerating ad revenue. The firm said Netflix could maintain annual earnings per share growth of over 20% and projected advertising income to reach as much as $10 billion by 2030.

New episodes of Squid Game, Stranger Things, and Wednesday are expected to help Netflix retain subscribers while capitalizing on price hikes and its ongoing crackdown on password sharing.

Jefferies said Netflix may also benefit from expanding into live sports and entertainment, further strengthening its position in a crowded streaming market. Shares have gained nearly 37% year to date, significantly outperforming the S&P 500s sub-2% rise.

This article first appeared on GuruFocus.