Netflix ‘s third-quarter results and upcoming initiatives signal that the streaming giant’s revenue troubles are largely behind it, JPMorgan said. Analyst Doug Anmuth upgraded the streamer stock to overweight from neutral, saying in a note to clients Wednesday that Netflix’s foray into advertising should pay off over time. “Coming out of 3Q earnings, we have increased conviction in NFLX’s ability to accelerate revenue growth with the help of advertising and monetization of account sharing, expand operating margins, and increase FCF,” he wrote. The move into advertising also puts Netflix in “more direct competition” with traditional television, Anmuth said. Netflix on Tuesday shared third-quarter results that came in above analysts’ expectations . The company also reported 2.4 million added subscribers after two periods of declining subscriptions. Shares of Netflix have plummeted 60% this year and sit about 66% off their 52-week highs, as competition heats up in the streaming space and investors weigh its recent subscriber losses. Anmuth upped the bank’s price target on the stock to $330 a share, suggesting a potential 37% rally for shares in the near term. Netflix also got an upgrade from Deutsche Bank to a buy rating with a $350 price target. Analyst Bryan Kraft said the stock should enter a “subscriber growth inflection point” in 2023 as the company cracks down on account sharing. “The story is not completely clean given the currency headwinds Netflix is facing,” he wrote. “However, the market has brushed aside the FX impacts for the last two quarters, instead focusing on subscriber trends and constant currency financial metrics. We are inclined to believe that this will continue to be the case.” Netflix shares soared about 14% in premarket trading Wednesday. — CNBC’s Michael Bloom contributed reporting
