Core Viewpoint - Deutsche Bank maintains a "Hold" rating on Netflix (NFLX.US) with a target price of $950, citing limited upside potential at current valuation levels [1] Group 1: Financial Performance and Projections - Deutsche Bank expects Netflix's revenue growth to slow to high single digits by 2027, indicating that current market expectations for double-digit growth are already reflected in the stock price [1] - The stock is currently valued at 38 times the expected earnings per share (EPS) for 2026 and 30 times the expected EBITDA for the same year, suggesting limited room for multiple expansion [1] - The bank does not foresee significant impacts from currency fluctuations on Netflix's ability to meet performance guidance, as most currency movements have remained within ±4.5% since the last earnings call [2] Group 2: Advertising Business Growth - Netflix's advertising business is gaining momentum, with a 30% quarter-over-quarter increase in ad spending from clients, and a projected 40% increase in Q4 [3] - The company is expected to generate approximately $8.75 billion in advertising revenue by 2030, contributing about 30% to overall revenue growth from 2026 to 2030 [3] Group 3: User Interface and Content Strategy - Netflix is rolling out a new user interface globally, aimed at enhancing content recommendations and engaging with emerging content formats like live streaming and gaming [4] - The company has partnered with France's TF1 Group to offer live channels and on-demand content, marking its first move as a "cable distributor" and potentially replicating this model in other international markets [4] - Netflix's content performance in Q3 showed a strong start, with a 4% year-over-year increase in viewing hours in the U.S. and significant viewership for key titles [6] Group 4: Market Position and Competitive Landscape - The "CancelNetflix" movement initiated by Elon Musk is viewed as a temporary noise, reinforcing Netflix's strong position in the streaming market despite some fluctuations in subscriber numbers [7] - Deutsche Bank does not anticipate Netflix acquiring traditional media companies, as the company prefers organic growth and has built a substantial library of original content [8] Group 5: Overall Assessment - Despite a solid fundamental outlook, Deutsche Bank believes Netflix's stock has limited upside potential at current valuation levels, with future price increases dependent on sustained contributions from advertising, international market innovations, and upward adjustments in earnings expectations [9]