04:17 PM EDT, 04/15/2024 (MT Newswires) -- Netflix ( NFLX ) is expected to post "strong" Q1 results amid benefits from paid sharing tailwinds and industry rationalization, UBS Securities said Monday in a report.

Paid sharing helps the company increase revenue growth despite weaker foreign exchange, the report said.

UBS expects accelerating average revenue per member growth in H2 on the back of strong revenue growth, increased market share and favorable pricing dynamics.

Netflix's ( NFLX ) engagement trends remain consistent across tracked markets with an average 11% decline from a year earlier, UBS said.

The firm said Netflix ( NFLX ) will benefit from rising pay TV competition as programmers intensify efforts to make streaming profitable by employing strategies such as price hikes, platform consolidation, library curation, content spending cuts and higher licensing fees.

UBS reiterated its buy rating for Netflix ( NFLX ) stock and kept the price target at $685. Results from Q1 are scheduled for April 18.

Netflix ( NFLX ) shares fell 0.1% in recent after-hours trading Monday after dropping 2.5% in the regular session.