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Top analyst: Netflix shares to rebound by 68%

Andrew Harrer | Bloomberg | Getty Images

One of Wall Street's top analysts said the massive drop in Netflix shares on fears of rising content costs, competition and Brexit is overdone.

His price target calls for a rebound of more than 60 percent.

"Reports of Netflix's demise have been greatly exaggerated," Stifel Nicolaus' Scott Devitt wrote in a note to clients. "Netflix's robust slate of originals has solidified its leadership in streaming video and a deceleration in cash spend this year suggests Netflix may see meaningful content leverage in 2017-2018,"

Devitt's picks have a 15 percent one-year average return, according to analyst ranking service TipRanks, placing him in the top 2 percent of all Wall Street analysts covering any industry.

The analyst reiterated his $143 price target on Netflix, representing 68 percent upside from Monday's close. The stock is down more than 25 percent so far in 2016, including a 7 percent loss in the last week amid the global Brexit crisis.