Netfflix is surpassing HBO

А deal between video giant Netflix and Disney, made several years ago, is finally poised to bear fruit.

As Netflix finally prepares to exclusively stream popular Walt Disney Co. films this fall, the digital media company appears to have even more upside due to international growth, pricing power and its copious spending and focus on content. The company will have exclusive streaming access to films from Disney, Marvel, Pixar and Lucasfilm starting in September.

Netflix shares were trading up about 3.7% Tuesday afternoon to $98.42 a piece.

"They're going to dominate the market. It's very difficult to compete against Netflix," Drexel Hamilton analyst Tony Wible said, explaining that the company is spending about $8.5 billion per year globally for content. "Between international opportunities and pricing power, Netflix is an undervalued investment" - he added.

On Sunday, RBC Capital Markets analyst Mark Mahaney reiterated his outperform rating and price target of $140 on Netflix. According to RBC's 19th quarterly U.S. survey, about 50% of Netflix users said in May that they turn to Netflix for movies and TV shows, down from 53% in February, but still ahead of Amazon's 27% figure and the same as Alphabet's (GOOGL) YouTube. Netflix is still growing faster than YouTube and Amazon on a two-year basis.

Dougherty & Co. analyst Steve Frankel states that Netflix has basically became an HBO.