Citi analysts increased their price target for Netflix (NASDAQ:NFLX) to $500.00 from $400.00, while maintaining their Buy rating. Ahead of the upcoming Q2 results on July 19, the analysts initiated a positive catalyst watch.
The latest analysis conducted by Citi has made them more optimistic about Netflix’s Ad Tier. They now expect the addition of 82 million new subscribers and $10.6 billion of incremental revenue, compared to the previous forecast of 66 million subscribers and $6.3 billion revenue.
According to Citi’s client note, they believe Paid Sharing will contribute only minimally to incremental revenue. However, they increased the price target on the stock due to more optimistic estimates for the Ad Tier.