Netflix surges to an all-time high

Netflix spiked to another all-time high on Tuesday.

The stock rallied more than 8% in trading to as high as $122.79 per share, a record level.

On Tuesday, analysts at Guggenheim Securities initiated coverage of the stock with a "Buy" rating and a price target of $160.

They wrote (via Barron's):

"The stock's performance has been very strong over the past two years, yet at $48 billion in market capitalization, we still see a significant gap between equity value and ultimate intrinsic value of the service. We believe investors should continue to build positions in Netflix shares up to $160."

The analysts reiterated a point we've heard from other analysts about why Netflix is an attractive business: it's a solid choice for people who want an alternative to the cable channels they've been stuck with for years.

They also noted the investments Netflix is making outside the US and its seven Emmy nominations for original content that rivalled traditional networks.

On July 15, Netflix reported second-quarter earnings that beat expectations, sending the stock up 18% the following day.

Today's all-time high puts shares up 149% year-to-date, 101% for the past 12 months, and 9925% above the IPO price.

Here's a chart showing how the stock has moved over the last month: