Wall Street closes at a record for the first time since end of January
Investing.com - KeyBanc raised its price target on Netflix Inc. shares (NASDAQ:NFLX) to $115 from $108 while maintaining an Overweight rating. The stock currently trades at $103.16 with earnings results due in just two days.
The firm raised its 2026 and 2027 revenue and earnings per share estimates ahead of first-quarter earnings. KeyBanc analyst Justin Patterson cited a durable monetization algorithm and the removal of Warner Bros. Discovery integration costs as reasons for the adjustment.
KeyBanc now anticipates 2026 revenue of $51.4 billion, representing 13.7% year-over-year growth, and 2027 revenue of $57.9 billion, representing 12.6% growth. These projections build on Netflix’s current revenue base of $45.18 billion over the last twelve months, which grew nearly 16% year-over-year. The firm raised its 2026 earnings per share estimate to $3.77 and its 2027 estimate to $4.01. According to InvestingPro analysis, Netflix appears overvalued at current levels.
The analyst noted that Netflix may reinvest some initial savings but believes this will likely translate to higher growth and more than $4 per share in 2027 earnings. The new price target of $115 reflects a 28.6 times 2027 price-to-earnings multiple. The streaming giant currently trades at a P/E ratio of 40.85, and InvestingPro Tips highlight that the stock is trading at a high earnings multiple. For deeper insights, investors can access Netflix’s comprehensive Pro Research Report, one of 1,400+ available on the platform.
KeyBanc attributed the higher multiple to a cleaner story following the Warner Bros. Discovery situation, which includes a one-time breakup fee payment and eliminates integration costs.
In other recent news, Netflix is preparing to release its first-quarter 2026 earnings report, with analysts providing various insights and projections. Evercore ISI has reiterated an Outperform rating with a $115 price target, anticipating first-quarter revenue of $12.2 billion, a 15.5% increase year-over-year, alongside an operating income of $3.94 billion and earnings per share of $0.76. Meanwhile, Guggenheim has maintained a Buy rating and a $130 price target, noting Netflix’s decision to abandon its pursuit of Warner Bros. Discovery and its recent price increases in the U.S., which are expected to help double ad revenue to $3 billion in 2026. MoffettNathanson has raised its price target to $120, citing improved earnings per share estimates for 2028. Deutsche Bank also increased its price target to $100, driven by higher operating income and earnings per share estimates, while maintaining a Hold rating. Additionally, TD Cowen continues to support a Buy rating with a $112 price target, forecasting 4.56 million new paid subscribers in the first quarter due to Netflix’s strong content lineup. These developments reflect a mix of cautious optimism and strategic adjustments as Netflix navigates its growth strategy.
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