Bank of America on Monday raised its price target for Netflix from $700 to $740, a few days ahead of the release of the American video-on-demand giant's second-quarter results.

The financial intermediary, which is reiterating its buy recommendation on the stock, believes that the video streaming platform is well positioned to generate "solid" growth in subscriptions.

As for second-quarter results, scheduled for Thursday evening, BofA is already anticipating pleasant surprises, with 4.6 million net new subscribers expected over the April-June period and sales of $9.49 billion.

The analyst also expects a "significant" take-off in advertising revenues for the Californian group from fiscal 2025 and 2026.

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