The investment firm's analysts say they expect subscriber growth to normalize in the fourth quarter. A survey by the firm among U.S. customers reinforced the platform's competitive position and high user satisfaction, CS said.
Analysts maintained their $586 price target while saying the stock is at a favorable entry point and attractive absolute valuation.
The firm sees a strong August to December pipeline on releases with "numerous potential top-of-funnel titles," according to analyst Douglas Mitchelson. He also expects a stronger full-year slate in 2022 vs 2021.
Second-quarter results and third-quarter guidance are still uncertain and any disappointment could be a "clearing event" ahead of a rebound in the fourth quarter, according to Mitchelson.
Shares of Netflix at last check were 1.7% higher $527.02.
Earlier this month, Netflix and Amblin Partners, the film and television studio led by Steven Spielberg, raised the curtain on a partnership. In the deal, the Hollywood director's company will produce multiple films a year for the Los Gatos, Calif., streaming giant.
Spielberg, the Oscar-winning director of "Schindler's List," "Jurassic Park" and "Saving Private Ryan," will continue to direct movies for Comcast's (CMCSA) - Get Report Universal Pictures as part of a separate deal.
Earlier this month, Netflix launched Netflix.shop, which will sell curated products including apparel, toys and games.