UPDATE: Canaccord Initiates Coverage On Netflix, Inc. On Revenue Outlook

Netflix, Inc. (NASDAQ: NFLX) accounts for more than half of the overall Internet traffic during prime time, suggesting a critical mass increasingly valued by consumers, an analyst said Wednesday.

Canaccord's Greg Miller launched coverage of the company with a Buy rating and $550 target, saying Netflix will continue to change the TV viewing habits of consumers "for years to come."

The company is positioned for sustained revenue growth of more than 20 percent, with margins widening as it gains critical mass in new regions, Miller said.

SunTrust also launched Netflix coverage with a Neutral rating.

Expansion beyond the U.S. has sparked renewed revenue growth expected to continue through 2015 according to Miller, who expects wider margins as individual markets achieve "critical mass."

Netflix currently counts 31 million U.S. subscribers and eight million internationally.

Netflix shares traded recently at $482.10, up 0.64 percent.