Wells Fargo analyst Steven Cahall upgraded Netflix to Overweight from Equal Weight with a price target of $700, up from $510 following last night’s Q4 results. While Q4 net additions of 8.5M beat expectations, the company’s operating leverage “really impressed,” Cahall tells investors in a research note. Netflix is now “effectively cash sustaining,” says the analyst. He believes that with “little to hinder pricing growth,” and the subscriber base still expanding, Netflix can afford to “grow cash content spend AND deliver strong operating leverage.” He sees the long-term economics “providing a catalyst runway” for Netflix shares.