According to Evercore ISI, Netflix is the “top pick” for next year, although the streaming giant is said to have missed its ad revenue target. Netflix shares closed down more than 8% on Thursday following Digiday’s report that the company had offered to pay advertisers back for falling viewership goals. However, Mark Mahaney, head of internet research at Evercore ISI, brushed those concerns aside and said the company’s long-term outlook remains positive. “All we learned is this company over-forecast in the first quarter of how well they can do. I think that’s increasing,” Mahaney told Squawk Box Asia today. Friday. “I still like this stock. It’s one of my top picks for next year.” Evercore ISI expects Netflix shares to rise more than 17% to $340 a share over the next 12 months. Meanwhile, according to FactSet data, the average price target of 40 analysts includes stocks that show a 7.6% increase from the current share price of about $290. Netflix stock is down more than 51% this year. Mahaney said a possible global recession would also be an opportunity for Netflix to expand its subscriber base. He argues that consumers have the ability to spend on entertainment despite the recession – but do it cheaply. “I think it’s extremely cheap compared to the value proposition. There’s economic risk [but] I just think they’ve hedged pretty well at these prices,” he said. Netflix costs less than most of its US competitors, with the most basic plan starting at 6.99 Disney Plus is offered at $7.99, while Amazon Prime Video starts at $8.99. will drive subscriber growth, with earnings potential higher in the future as customers upgrade their plans.” I think they will be better able to grow their subscribers and then they will get ad revenue on top of that. So to me, what’s important is that the price of subscriber growth is more than the money they make from advertising,” he said, referring to Disney’s decision to fire then-CEO Bob Chapek. last month partly due to “heavy” loss of business at Disney Plus, Netflix’s direct competitor. see more of that. I think that’s good for the incumbent, it’s Netflix,” Mahaney added.