KeyBanc analyst Justin Patterson raised the price target on Netflix (NASDAQ: NFLX) to $115.00 (from $108.00) while maintaining an Overweight rating.

The analyst commented: "Ahead of 1Q earnings, we raise our 2026E/2027E revenue and EPS to reflect: 1) a durable monetization algorithm; and 2) the removal of Warner Bros. Discovery integration costs. While we suspect Netflix may opt to reinvest some of the initial savings, we believe this will likely translate toward higher growth and >$4/share in 2027E EPS. We maintain our OW rating and raise our PT to $115 (28.6x 2027E P/E) to reflect the higher EPS forecast and cleaner story post-WBD.

Raising 2026E and 2027E revenue estimates by <1% each, with EPS increasing more meaningfully. We now anticipate 2026E and 2027E revenue of $51.4B (+13.7% y/y growth) and $57.9B (+12.6% y/y growth), respectively. Due to a one-time breakup fee payment and no integration costs from WBD, we raise our 2026E/2027E EPS to $3.77 and $4.01, respectively. Our new PT of $115 (28.6x 2027E) reflects our higher 2027E EPS forecast and a slightly higher P/E multiple to reflect a cleaner story post-WBD."