01:35 PM EDT, 03/11/2024 (MT Newswires) -- Netflix's ( NFLX ) average revenue per membership, or ARM, is ramping up this year and the company will likely see a continuation of tailwinds to its subscriber numbers from paid sharing of accounts and advertising, Oppenheimer said in a note to clients emailed Monday.

"We are forecasting 2024 ARM +4% y/y, following the October '23 price increases in US/UK/France and the gradual phase out of Basic, with no material improvement in ad monetization," said Oppenheimer analysts including Jason Helfstein.

The US accounts for 41% of the company's revenue, while the US and France represent about 6% and 5% respectively, Oppenheimer said.

"While ARM growth is largely understood, we think there is high likelihood of upside to Street net adds, as estimates currently assume a substantial slowdown in paid sharing/ad-tier subs despite bullish 3P/engagement data," the note said.

Oppenheimer believes subscribers will potentially be 17 million above consensus estimates over the next three years.

Also, with streaming peers "prioritizing profitability, we see competition easing," the note said.

The investment firm increased Netflix's ( NFLX ) price target to $725 from $615 and kept its outperform rating.

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