Citi analysts hiked the price target on Netflix (NASDAQ:NFLX) stock to $500 per share. They also opened a positive catalyst watch ahead of the Q2 results, sending Netflix shares nearly 2% higher.

Results of the new analysis make the analysts more bullish on Netflix’s Ad Tier as they now expect 82 million new subscribers and $10.6 billion of incremental revenue, up from the prior forecast of 66M and 6.3B, respectively.

“We continue to believe the Paid Sharing may add very little incremental revenue. Based on the more bullish Ad Tier estimates, we are raising our target price,” the analysts said in a client note.

“We have refined our analysis now that we have actual Paid Sharing prices in many markets (versus just the LATAM test in 3Q22). Our updated analysis still suggests muted upside from Paid Sharing. We believe the crackdown on password sharing (without the Ad Tier) could reduce revenues by ($3.0) billion or boost revenues by $3.2 billion,” they added.

Netflix rallied over 3% higher on Wednesday, closing at $429.84.