Sam Boughedda

Investing.com — Netflix Inc. (NASDAQ:) shares fell more than 1% on Tuesday after the announcement. announcement of a price increaseLast week. Reuters reported that Friday’s increase in the monthly fees was $1-$2 and varied depending upon the program to finance new programming.

Analysts are generally positive about the news. JPMorgan’s Doug Anmuth, NYSE: (NYSE:), stated in a note to investors that he expects the price increase to generate an additional $1 billion in revenue by 2022. Anmuth stated that price increases could lead to more friction. Anmuth believes Netflix would be willing to give up a few subscribers in exchange for additional revenue.

BMO Capital analyst Daniel Salmon reiterated a 0utperform rating on Netflix and a $700 target price for the streaming service. He explained in a note to clients, that prices have continued to rise in South Korea, Canada, and the U.S.

Analyst added, “This supports the expanding free liquidity flow upon which more investors are concentrated after high-multiple business have been valued.”

Piper Sandler (Elephant), Wedbush, and KeyBanc all supported the price increase.

Deutsche Bank has lowered the price target of Netflix shares to $580, from $590. However, they maintained their Hold rating. Deutsche Bank did not mention the price drop, but stated that they had not seen any encouraging data from third parties used in calculating the company’s Q4 net adds.