Netflix's mixed quarterly results had something for the bulls and the bears, as analysts weighed their outlook on the streaming service against a delay in the password sharing crackdown and lackluster guidance.
Hodulik upgraded Netflix to buy from neutral, saying he expects growth will inflect with double-digit profit growth and rising free cash flow.
What's more, he said restricting password sharing could become "meaningfully accretive" for Netflix as soon as the third quarter.
Netflix turned to an ad-supported plan, and a password sharing crackdown, after reporting its first subscriber loss last year.
He cited mixed subscriber growth, light guidance, and uncertainty around the delayed rollout in the password sharing crackdown.