BMO, Goldman Raise Netflix Targets to $135 and $120 on Pricing and Ad Growth
BMO Capital reaffirmed an Outperform rating on Netflix with a $135 price target, forecasting roughly $1.5 billion of incremental fiscal 2026 revenue from recent U.S. price increases. Goldman Sachs upgraded its view, boosting its objective 20% to $120 and projecting double-digit growth and $9.5 billion of ad revenue by 2030.
1. Pricing-Driven Revenue Uplift
Netflix implemented U.S. subscription price increases expected to deliver roughly $1.5 billion of incremental revenue in fiscal 2026, representing about 3.3% top-line growth solely from pricing adjustments.
2. Analyst Price Target Revisions
BMO Capital reaffirmed an Outperform rating with a $135 price target, while Goldman Sachs lifted its objective 20% to $120, reflecting differing assumptions on revenue growth and valuation multiples.
3. Operating Margin and Ad Revenue Outlook
Goldman projects annual GAAP operating margin expansion of approximately 250 basis points over the next three years and anticipates Netflix’s ad-sales business will reach around $9.5 billion by 2030 as a new growth driver.