Netflix stock can carry on racking up gains - and shareholders can thank the streamer's efforts to make more money from advertising, according to an analyst who upgraded the stock Monday.

MoffettNathanson's Robert Fishman lifted his rating on Netflix to Buy from Neutral, setting a $1,100 price target that implies shares can jump about 20% from their current level.

Netflix raised prices for its ad-supported plans for the first time in January, and Fishman's bull case centers on the idea that the streamer will be able to quickly ramp up monetization of the tier. He forecasts that Netflix will be generating more than $10 billion in advertising revenue by the end of the decade, up from an estimated $1.5 billion in 2024.

"We are now at another unique moment in Netflix's history with the company starting to gain scale in advertising, which should unlock a new runway of growth in the business for years to come... The success of the ad-tier should drive margins higher without any ceiling in sight," Fishman wrote.

Netflix shares climbed 1.2% to $928.46 in Monday's premarket.