Investors should buy Netflix shares on the prospect of better subscriber growth next year, according to Pacific Crest, which reiterated its overweight rating on the online streaming video company.
Longtime Netflix members face a $2-per-month price hike this year after the "grandfathering" grace period from 2014's price increase ends.
"We continue to recommend buying NFLX. ... Continued reactions to Netflix's price increase and distraction from the Olympics should restrain sub growth in Q3," analyst Andy Hargreaves wrote in a note to clients Wednesday. "However, both of these factors should begin to wane in Q4, which, along with growing local language support, could drive upside to international subs in Q4 that continues into 2017."
Netflix is scheduled to announce third-quarter financial results Monday.