Netflix gains as Deutsche Bank turns bullish on valuation
NFLX•Netflix shares rose 2.1% after Deutsche Bank upgraded the stock to buy from hold, while cutting its price target by $5 to $95. Analyst Bryan Kraft said Netflix’s valuation undervalues its growth outlook.
1. Upgrade and valuation
Deutsche Bank upgraded Netflix to buy from hold and lowered its price target by $5 to $95. Kraft said the stock trades at 18 times his 2027 earnings-per-share estimate, compared with about 40 times forward earnings when it peaked in June 2025. He sees room for the multiple to expand to the low-to-mid 20s, alongside his forecast for 23% EPS growth in 2027.
2. International growth and AI
Kraft said international viewing time has increased year over year in each of the past four six-month periods, and noted that more than 60% of Netflix content is produced outside the United States. He also described artificial intelligence as more friend than foe for Netflix, citing potential uses in content production, personalization and advertising.
3. Analyst outlook
Netflix shares were down about 25% year to date, including a roughly 13% decline this month. The average rating of 51 analysts was buy, and the median price target was $94.50, down from $115 three months earlier.
