Should I buy Netflix shares after a positive view from Wedbush?

Netflix,Inc. (NASDAQ: NFLX) shares have weakened from $609 to $162 since the beginning of January 2022, and the current price stands at $186.

Investment firm Wedbush has a positive view of the shares of this company, and it reported that Netflix has the potential to beat second-quarter expectations.

Investment firm Wedbush has a positive view

Investment firm Wedbush upgraded shares of Netflix this Monday and reported that Netflix has the potential to beat second-quarter expectations.

Michael Pachter, an analyst from Wedbush, assigned a price target of $280 on Netflix shares which imply a more than 40% upside compared with the current price.

Netflix announced two substantial changes to its business model recently, cracking down on password sharing and introducing an ad-supported subscription. According to Wedbush, these changes are a good idea, and according to estimates, Netflix's massive content lineup in 2022 could also drive subscriber growth.

Investment firm Wedbush said that Netflix holds a nearly insurmountable competitive advantage over rivals, and the current share price could be a good entry-level for long-term investors. Analyst Michael Pachter added:

On the other side, the uncertainty because of the Russian-Ukrainian war, high inflation, and the rising risks of the recession remain investors' focus.

Netflix is a stable company with a bright future, but investors should consider that if the U.S. stock market enters a more significant correction phase, the shares of Netflix could be at lower levels.

$150 represents the current support level

Netflix shares continue to trade near 2022 lows, but the current price could be a good entry-level for long-term investors.

Wedbush's price target implies more than 40% upside on Netflix shares compared with the current price, and if the company posts strong second-quarter earnings results, the share price will probably be above the current levels.

If the price jumps above $250, it will signal to trade Netflix shares, and the next target could be $300.

On the other side, if the price falls below the current support that stands at $50, it would be a "sell" signal, and we have the open way to $130.

Summary

Netflix shares have weakened more than 65% since the beginning of January 2022, but according to investment firm Wedbush, the current price could be a good entry-level for long-term investors. Michael Pachter, an analyst from Wedbush, assigned a price target of $280 on Netflix shares which imply a more than 40% upside compared with the current price.