Netflix  (NFLX) has tuned out nearly all the headwinds it experienced in 2016, setting shares up for a brighter future in 2017, according to JPMorgan analysts, who added the stock to its U.S. Focus List on Wednesday.

Netflix shares saw mixed performance in 2016, the firm said, as the streaming service felt the effects of increased subscriber churn related to its pricing change, struggled to see momentum in international markets and faced competition from Amazon's (AMZN) Prime Video expansion, said JPMorgan, which has an "overweight" rating and $129 price target on Netflix stock. Additionally, Netflix burnt through a ton of cash last year, spending approximately $6 billion on original content.  

Shares of Netflix increased about 12% last year, a modest gain compared to previous years. Shares were lower by 0.2% to $129.48 on Wednesday late morning. 

"However, we believe Netflix sets up as a cleaner story into 2017 with pricing changes behind, revenue accretion from higher average selling prices, stronger content, and increased global profitability," the firm noted. "Importantly, we think Netflix can add more U.S. and international subscribers in 2017 than 2016, on its way toward 60 million-plus U.S. subs and ~100 million international subs by 2020..."

JPMorgan said Netflix is its No. 2 large-cap pick, behind No. 1 Facebook  (FB) and ahead of No. 3 pick Alphabet (GOOGL) . 

Netflix has said it plans to ramp up original content production this year to more than 1,000 hours from 600 hours in 2016. The company has a jam-packed slate of planned content releases, including the original series  A Series of Unfortunate Events on Jan. 13; its first original reality series, Ultimate Beastmaster, on Feb. 24; and the beginning of "highly-anticipated" exclusive content deals with Disney (DIS) and the CW. In all, it should create Netflix's "strongest" content slate, the firm said. 

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"We believe Netflix originals are working well, some of them with global appeal, and estimate ~80% of Netflix's content is exclusive," JPMorgan added. 

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