Netflix stock is down 60 per cent this year, but Wall Street is betting that its ad-supported play will turn the company’s fortunes around.

At least three firms on Wall Street have upgraded its forecast for one the worst-performing stocks in the Nasdaq 100, expecting its move into advertising will arrest losses prompted by terrible earnings reports, and its first user base drop since 2011.

“Netflix has already taken its medicine, and it has these catalysts ahead that are identifiable and that it can execute on,” said David Klink, senior equity analyst at Huntington Private Bank.

“It’s weird to think of Netflix as a value stock, but given the uncertain backdrop, a lot of portfolios would benefit from having a stock like this, that is both offense and defense,” he said.

Evercore called the ad-supported tier “a clear catalyst on the horizon, one that can drive a material re-acceleration in revenue growth”, while Oppenheimer told investors in a note the ad-tier “should accelerate subscriber growth.

While this is heartening, less than a third recommend buying the stock at the moment, with over half having a ‘hold’ rating.