11:40 AM EDT, 10/15/2024 (MT Newswires) -- Netflix ( NFLX ) is positioned to accelerate ad tier revenue contribution over the last months of 2024 and next year as it enhances advertising and targeting, uses new partnerships and adds more live events, Wedbush Securities said in a note Tuesday.

Wedbush said that with this setup, the main driver of growth in 2026 could be the ad tier, which the firm said limits churn.

"Netflix ( NFLX ) is now lapping its password crackdown, but we continue to see benefit from it in our survey results, while its advertising tier should reap benefits for several years," Wedbush said.

The firm said its Q3 survey results indicate a continued expansion of the ad tier membership, but that overall subscribers have decelerated.

Wedbush said the company, which is set to release Q3 results on Thursday, is expected to meet expectations in the quarter and provide "strong" guidance for Q4 regarding subscriber numbers and ad revenue per user.

Wedbush boosted its price target on Netflix ( NFLX ) to $775 from $725 while maintaining an outperform rating.

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