FBR Capital analyst Barton Crockett weighed in in Netflix (NASDAQ: NFLX) after the company announced a 7-for-1 stock split.

Crockett commented, "The significance of the split, we believe, is mainly its reflection of management's confidence in the durability of the recent stock surge. NFLX was hovering near $60 three years ago; now it is nearing $700. Clearly, management does not see its stock round tripping. With a $900 price target, we agree. In this note, we highlight some not widely seen data documenting Netflix's domestic rise and dominance, bolstering confidence in its ability to grow subs and charge more domestically and to replicate its success in key markets around the world."

The analyst highlighted the following key points:

• Data point No. 1: Netflix's "ratings" are on par with ABC and NBC, on pace to eclipse all broadcasters
• Data point No. 2: No network comes close to Netflix in consumers' willingness to pay.
• Data point No. 3: Netflix is at scale in content spending
• Data point No. 4: Consumers like Netflix more than TV.

The firm maintained an Outperform rating and price target of $900.

For an analyst ratings summary and ratings history on Netflix click here. For more ratings news on Netflix click here.

Shares of Netflix closed at $681.19 yesterday.