Deutsche Bank analyst Bryan Kraft upgraded Netflix to Buy from Hold and raised his price target for the shares to $350 from $240. The streaming service closed yesterday up $5.58 to $309.25.

The analyst admits he underestimated the market’s willingness to underwrite several years of negative free cash flow to drive growth. Netflix has changed the industry in a “profound way” and in doing so has given itself a “significant” lead, making it very difficult for the traditional media companies or even other big tech companies, to catch up, Kraft tells investors in a research note. He believes Netflix continues to capitalize on this lead by reinvesting in content, marketing, and the user experience.

Further, the company’s Q1 guidance looks conservative by up to 1M subscribers worldwide, the analyst contends.