In a research report released Thursday, Canaccord analyst Gregory Miller reiterated a Buy rating on shares of Netflix, Inc. (NASDAQ:NFLX), with a price target of $120, following the news that the company will be raising the price of its most popular (2-stream) offering $1 from $8.99 per month to $9.99 per month. Netflix shares reacted to the news, rising nearly 6% as of 3:49PM EDT.

Miller wrote, “Although the prior price increase was not executed flawlessly, we believe the business has in fact demonstrated the capability to hold such price increases. With the flood of additional and increasingly original content that has been introduced since that time, we believe yet another price increase could in fact hold and be beneficial for shareholders, as it implies the long-term price trajectory could be greater than initially indicated by management.”

“While the initial stock reaction has been positive this afternoon, should the increase be officially announced, it may be cause for concern in the near term in terms of net additions. We remind investors that management ultimately attributed weakerthan-expected 3Q14 domestic subscriber net additions to the 2014 price increase, which management believed was initially offset by the release of Orange Is the New Black season two,” the analyst added.

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Gregory Miller has a total average return of 6.0% and a 54.2% success rate. Miller has a 54.2% average return when recommending NFLX, and is ranked #616 out of 3772 analysts.