Netflix's (NFLX) average revenue per member in Q3 is likely to rise sequentially on higher prices and subscription retention, Wedbush said in a Friday note.
Wedbush said it expects Q3 EPS of $0.83 on revenue of $12.87 billion, and continued buybacks during the quarter. The company is due to report Q3 results on Oct. 20.
Channel checks indicate churn from the March price increases stayed light, while the ad tier remained ahead of the premium tier, the note said.
Ad revenue remains on track to double in 2026 as the company proactively makes changes to address engagement issues while moving funds from heavy infrastructure to more content spend, analysts wrote.
The brokerage said it reiterated its outperform rating on the stock and lowered its price target to $90 per share from $105.
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