Netflix (NFLX) PT Raised to $1,100 at Barclays

Barclays analyst Kannan Venkateshwar raised the price target on Netflix (NASDAQ: NFLX) to $1,100.00 (from $1,000.00) while maintaining a Equalweight rating.

The analyst comments: "The stock continues to be seen as a defensive long, based on our investor discussions, and despite concerns about valuation, we doubt investors will look to sell out of the name into earnings in the coming quarters. Estimates continue to have upside potential on account of weakness in the US dollar, which should help margins through the year. In addition, the company’s content slate has two of its biggest shows, new seasons of Stranger Things, and Wednesday in the second half in addition to NFL later in the year. With no more subscriber or ARPU disclosure, it is not clear what would derail the company’s present growth momentum. Later in the year, however, focus will likley turn to guidance for next year and in order for present growth momentum to carry over, advertising revenues would have to contribute meaningfully more. This, however, remains a work in progress and the company has been trailing expectations on this front. This is likely to make it difficult for investors to deploy incremental capital into the name as present valuation for the most part captures most of the upside potential from advertising but doesn’t really factor in a slowdown in revenue growth in case ad revenue growth continues to trail expectations. Even if we assume revenue growth next year is in the mid teens for instance and margins expand another 200bps, which would imply 4-5% higher than consensus EBITDA for 2026, Netflix valuation would be ~33x ‘26E EBITDA, which is still higher than most of its peers."

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