Deutsche Bank analyst Bryan Kraft upgraded Netflix to Hold saying the company's Q4 results next week will exceed management's guidance and the consensus estimate for international subscribers.

The key driver of stock movement around earnings reports has predominantly been subscribers, Kraft tells investors in a research note. While Netflix's valuation remains "aggressive," its momentum over the near-term should be positive, the analyst contends. He points out that his initiation with a Sell rating on October 9, 2016, was based on his belief that the share price was two years ahead of the fundamentals and that a sale of Netflix was highly unlikely. Kraft upped his price target for the shares to $110 from $92.

The streaming service closed yesterday down $1.32 to $129.18.