Netflix Inc.'s NFLX, +2.52% 12-month stock price target was raised to $885 at MKM Partners on Friday on the potential for "significant upside" over the next few years related to the company's growth opportunity outside the U.S., according to analyst Rob Sanderson. That implies a share-price increase of more than 33% from Thursday's closing price of $664.24. The brokerage said that while it sees domestic subscriber penetration exceeding 60%, it expects an expansion to more than 100 million international subscribers by 2021. That would help increase over-the-top video adoption beyond levels of pay-tv penetration over time, said Sanderson. Pay-tv is expected to reach more than 1 billion subscribers globally by 2020, but the analyst said costs of running pay-tv operations are significantly higher than that of over-the-top video, which may price consumers out of pay-tv over time, especially in international markets, he said.