Atlantic Equities analyst Hamilton Faber upgraded Netflix to Overweight from Neutral with a price target of $283, up from $211. The upcoming advertising-supported service launch “could be extremely material” and its benefit hasn’t been reflected in consensus estimates, Faber tells investors in a research note. The analyst believes Netflix could generate average revenue per user of $26 per month from advertising, more than three times the level of Disney’s Hulu. While some subscribers may downgrade from their current ad-free plans, such a shift would be accretive to overall ARPU, says Faber, who estimates incremental revenue from the ad initiative could reach $6.7B over three years. Sell-side estimates “include little in the way of advertising benefits at present, although given the performance of the stock, we believe the buy side is ahead,” Faber writes.