On Monday, shares of Netflix (NASDAQ:NFLX) are up over 1 per cent in pre-open trading after it was upgraded to Outperform with a USD 325 per share price target.

The upgrade move comes after a deep analysis was performed into the company’s ad opportunity and the proprietary consumer survey results. It was found that ad-tier would attract some first-timers. Also, there is a larger opportunity to re-engage churned subscribers. Among 15 per cent of US churned subscribers, 43 per cent would re-subscribe at a lower price.

Of the 9 per cent who have never subscribed, 30 per cent would do so at a lower price. Approximately 70 per cent of current Basic subscribers would downgrade to ad-tier vs 55 per cent Standard and 46 per cent Premium.

Reportedly, the company is seen as being in a unique position to large aggregate audiences and control the timing of series launches for top-tier advertisers, commanding high CPMs.

Founded in 1997, Netflix, Inc. is an American subscription streaming service and production Company based in California.