New Street starts Netflix at Neutral with ad strategy still early

As previously reported, New Street analyst Dan Salmon initiated coverage of Netflix with a Neutral rating and $304 price target. While he likes the long-term opportunity advertising offers, he prefers stocks with greater ad exposure today, Salmon said. However, he thinks growing free cash flow profitability is "a distinct advantage" for Netflix and looks for free cash flow to become a bigger driver of the stock, Salmon added.