TD Cowen analysts told investors Friday that Netflix's (NASDAQ:NFLX) US member penetration rose in July.
In a research note, the analysts, who maintained an Outperform rating and $515 price target on the stock, said the view is based on a survey of 2,500 people.
"Our proprietary US survey data suggests rising member penetration in recent months, as the percentage of US respondents who indicated that they pay for a Netflix membership rose to 58.4% in July, up from 56.8% in June and 55.3% in May," they said.
As a result, TD Cowen expects Netflix to continue to benefit over the next several quarters from paid sharing.
"We forecast accelerating revenue and margin expansion in '24 and view consensus '24E FCF of $5.6BN as too low vs our $7.2BN," the analysts concluded.