By Senad Karaahmetovic

Citi analyst Jason Bazinet reiterated the Buy rating for Netflix (NASDAQ) shares and set a target of $295.00 per share.

According to the analyst, Netflix has two options: either introduce an affordable ad tier or monetize account-sharing.

“We believe an ad based tier – which we expect in 2023 – will allow Netflix to resume sub growth and help narrow the ~$5 billion gap between FCF and net income. Monetizing account sharing, on the other hand, is unlikely to improve beyond current levels,” Bazinet said in a client note.

A successful launch of an ad tier, coupled with a narrowing of the FCF vs net income gap, could help Netflix shares to recover and eventually reach Bazinet’s $295.00 price target.

Yesterday’s closing price of Netflix shares was $187.44