Evercore ISI has raised its Netflix (NASDAQ: NFLX) stock price target to $110 from $100 while maintaining its ‘Outperform’ rating, citing improving subscriber trends in the United States and Japan.
The update comes as Netflix stock continues to trade well below its recent highs despite delivering solid financial results and expanding profitability.
As of press time, NFLX was trading at about $79, implying the stock would need to rally roughly 40% to reach the new target.
The firm’s revised Netflix stock forecast is based on survey data showing stronger market penetration and customer retention across two of the streaming giant’s most important markets.
According to Evercore, U.S. penetration reached a multi-year high of 63%, while Japan penetration climbed to a record 22%. The survey also pointed to improving customer retention trends in Japan, with 58% of respondents indicating they were only slightly likely or not likely at all to cancel their subscriptions.
Customer satisfaction also remained strong, reaching 67% in Japan.
The analyst noted that Netflix’s ad-supported tier continues to serve a dual role by attracting new subscribers while reducing cancellations among existing users.
Evercore incorporated these trends into its valuation framework and rolled its model forward to 2028 earnings estimates, supporting the higher price target.
Wall Street bullish on Netflix stock
Overall, Wall Street remains broadly bullish on Netflix despite the stock’s recent weakness.
According to analyst consensus data from TipRanks, 33 analysts currently rate Netflix as a ‘Strong Buy’, including 25 buy ratings, eight holds, and no sell ratings. The average 12-month Netflix stock price target stands at $95.82, representing about 19.6% upside from current levels.
Among those forecasts, the highest target sits at $135, while the lowest estimate is $70.
The Netflix analyst rating update comes despite a challenging year for the stock. NFLX shares remain well below their 2026 highs, with investors focusing on slowing revenue growth rather than the company’s improving profitability.
In its latest quarterly results, Netflix reported revenue of approximately $12.6 billion, up 13% year-over-year, while operating income rose to about $4.19 billion. Net income increased 9% to roughly $3.4 billion.
Management maintained its full-year operating margin target of 31.5% and expects advertising revenue to nearly double to around $3 billion in 2026.
The company also continues to return capital to shareholders through aggressive stock repurchases, authorizing an additional $25 billion buyback program earlier this year.
Beyond advertising, Netflix is expanding its live content offerings, including NFL and MLB programming, while continuing to benefit from price increases in key international markets.
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