Deutsche Bank upgrades Netflix to Buy from Hold, cuts PT to $95
What happened
Deutsche Bank analyst Bryan Kraft upgraded Netflix to Buy from Hold on Tuesday, arguing the 26% year-to-date selloff now offers an attractive entry point. Kraft lowered his price target to $95 from $100, but the target still implies roughly 37% upside from recent levels. He contends the market's 'obsession' with weak U.S. viewing time overlooks Netflix's larger total addressable market and healthier international trends: international engagement has grown year over year in each of the past four six-month periods, over 60% of production now happens outside the U.S., and Netflix holds an 'established competitive advantage and substantial lead' in international production. At about 18 times his 2027 earnings estimate — down from ~40x forward earnings at the June 2025 peak — Kraft believes the growth outlook is being undervalued, with room to re-rate into the low-to-mid 20s multiple; he expects 23% EPS growth in 2027. Shares rose ~1.5% to $70.27 Tuesday after ending Monday down 2.7%.
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Start your free 14-day trialWho’s affected
- Netflix (NFLX): +1.5% Tuesday to ~$70.27 after -2.7% Monday; upgrade lands as shares sit near July post-earnings lows, reopening the bull/bear debate on engagement