Last Call: Netflix rises

Netflix shares rose 65 cents, or 2.1 percent, to $31.63. In the past year, the stock has traded between $15.62 and $40.90.

On Tuesday, Netflix unveiled the device, which is made by Roku Inc. and lets subscribers stream videos directly to their television sets via a high-speed Internet connection.

In a client note, Cowen and Co. analyst Jim Friedland said he doesn't think the set-top box launch will impact new customer signups or churn this year.

Roth Capital Partners analyst Richard Ingrassia called the box announcement a nonevent, saying that Netflix's earnings growth has started to decline and its market is getting more competitive.

Also Tuesday, Lehman Brothers analyst Doug Anmuth raised his rating for the stock to "Overweight" from "Equal Weight" and raised his price target to $37 from $31.

Anmuth noted a variety of factors, including his belief that the company continued to see strong DVD-by-mail trends in the second quarter, and that its digital investment is masking the core business' health.

He also raised his second-quarter and 2008 earnings-per-share estimates for Netflix and increased his estimate for second-quarter net subscriber additions by 45,000 to 194,000 due to "continued favorable trends in 2Q in terms of competition with Blockbuster and overall subscriber acquisition."