Netflix (NASDAQ:NFLX) shares rose nearly 3% on Wednesday after Wall Street analysts weighed in positively on the company’s outlook.

Wells Fargo analysts assigned a new Street-high price target of $500 per share as deep-dive analysis into NFLX’s opportunity pointed towards the additional upside.

“While our deep dive is a somewhat cautionary tale (and we reduce out year US ad ARPU) we still think NFLX is improving its customer lifetime value. It has proven that ARPU maximization and is not the same as revenue maximization, and ad scale should lead to owner economics and higher revs/margins/FCF,” they said in a client note.

“While a recent rally could mean less near-term upside, we remain long-term NFLX bulls,” the analysts added.

Similarly, JPMorgan analysts introduced the December 2024 target of $470 per share, which compares to the prior December 2023 target of $380.

“We came out of NFLX’s Upfront presentation 3 weeks ago incrementally positive – not so much on advertising, but because the broader paid sharing rollout was imminent & because we had increased confidence NFLX could roll out additional markets with less friction than the company experienced in Canada, New Zealand, Portugal, & Spain in February. We believe that is playing out as NFLX has improved communications w/sharers & borrowers (as well as non-sharing members) & eased concerns related to access while traveling,” they wrote.

Netflix shares are up about 38.4% year-to-date.