Investing.com -- Netflix has regained a Buy rating at Citi, with analysts outlining three catalysts that could lift the stock over the coming year.

Citi resumed coverage with a $115 target price, citing potential upside of around 5% to 17% driven by improving profitability, pricing power and stronger capital returns.

“We like Netflix for three reasons,” analyst Jason Bazinet wrote. “We see scope for NFLX to increase its FY26 EBIT guidance, we expect a US price hike in 4Q26 and we expect larger share repurchases.”

Citi forecasts that Netflix’s 2026 operating margins will rise “~40 bps above consensus,” reflecting what it describes as a more favourable cost outlook.

The analysts also expect the company to raise prices in the United States later this year, a move that could help fuel further revenue gains.

A third potential driver is the absence of large acquisitions, which “may increase the opportunity for capital returns,” including buybacks.

Citi said the company’s cash generation profile supports elevated shareholder distributions in the years ahead.

However, the bank also flagged long-term advertising revenue as a risk. Consensus estimates project approximately $11 billion in ad sales by 2030, but Citi believes the figure could be closer to around $9 billion, with annual growth of near $1.5 billion rather than around $2 billion from 2027 onward.

Even so, after updating its model to reflect 4Q25 results, raised revenue expectations and higher operating margins, Citi is bullish on the stock.