Wells Fargo analyst Steven Cahall upgraded Netflix to Overweight from Equal Weight with a price target of $400, up from $300. A positive catalyst path in 2023, led by lower churn and stable subscribers, creates "more ways to win," Cahall tells investors in a research note. With competition increasing and content growth slowing, "the pieces were there for tougher NFLX performance in 2022," says the analyst. However, looking at the same mosaic, he sees scope for key performance indicators to exceed in 2023, and notes that Netflix shares are still down by about half year-to-date. The company's content is "clearly improving" and the pull-forward from COVID is now mostly digested, with global connectivity "still providing a long-term tailwind," contends Cahall. He sees Netflix's churn improving in 2023 due to content and paid sharing.