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Pro Analysis

JPMorgan makes Netflix a top pick for 2017 on 'increased global profitability'

Reed Hastings, chief executive officer of Netflix.
Akio Kon | Bloomberg | Getty Images
Reed Hastings, chief executive officer of Netflix.

Investors should buy Netflix shares because the company's profit will top expectations in the coming year, according to JPMorgan, which reiterated its overweight rating and added the streaming giant to its "US analyst focus list."

"We believe Netflix is on track toward significantly disrupting the linear TV market through strong subscriber growth, content differentiation, and a better consumer proposition," analyst Doug Anmuth wrote in a note to clients Wednesday. "We believe NFLX sets up as a cleaner story into 2017 with pricing changes behind, revenue accretion from higher ASPs [average selling prices], stronger content, & increased global profitability."