Wall Street sets Netflix stock price target for the next 12 months

Core Viewpoint - Despite a weaker start to 2026, Wall Street remains optimistic about Netflix's long-term prospects, particularly in light of its upcoming fourth-quarter 2025 earnings report and the impact of its $82.7 billion acquisition of Warner Bros. Discovery assets [1]. Financial Performance - Wall Street anticipates Netflix will report revenue of $11.97 billion for the fourth quarter, reflecting a year-over-year increase of 16.8%, with post-split earnings per share projected at $0.55 [2]. - Global memberships are estimated to have exceeded 312 million, although Netflix has ceased reporting subscriber additions [2]. Stock Performance - Following a 10-for-1 stock split in November 2025, Netflix shares have declined approximately 33% from mid-year highs, currently trading between $90 and $95, with a year-to-date decrease of about 4.5% [3]. - As of the latest update, NFLX was trading at $89, showing a nearly 1% increase for the day [3]. Analyst Ratings and Price Targets - Analysts tracked by TipRanks have a 'Moderate Buy' consensus rating for Netflix, with 27 'Buy', 9 'Hold', and 2 'Sell' recommendations, and an average 12-month price target of $129.47, indicating a potential upside of 43.9% [6]. - Price target estimates range from a high of $152.50 to a low of $92 [6]. Individual Analyst Insights - HSBC initiated coverage with a 'Buy' rating and a price target of $107, citing Netflix's undervaluation and potential for deeper monetization and international growth, despite concerns over the streaming industry's pressures [9]. - Goldman Sachs maintained a 'Neutral' rating but reduced its price target from $130 to $112, expecting a solid finish to 2025 while highlighting the need for clarity on regulatory and financing risks related to the Warner Bros. acquisition [10]. - CFRA downgraded Netflix to 'Hold' from 'Buy' and lowered its price target from $130 to $100, expressing concerns over the Warner Bros. acquisition and Netflix's limited history with large acquisitions [11].