Netflix (NASDAQ: NFLX) shares drew fresh attention on Monday, March 2, losing 2.5% in pre-market after a nearly 14% surge on Friday, February 27, when CEO Ted Sarandos announced the streaming service would withdraw from the Warner Bros (NASDAQ: WBD) deal.
Two Wall Street notes also came in the early hours, contributing to the uncertainty with their differing takes on the Netflix stock.
J.P. Morgan cuts its Netflix price target
First, J.P. Morgan Chase upgraded the stock from ‘Neutral’ to ‘Overweight,’ reinstating coverage following a period of restriction. However, the bank also trimmed its Netflix price target from $124 to $120.
Still, analyst Doug Anmuth appears to have struck a generally optimistic tone, describing Netflix as a “healthy organic growth story” underpinned by strong content production, expanding global subscriber numbers, and sustained pricing power.
The analyst also pointed to the company’s advertising-supported tier, which he views as “under-monetized” and believes can offer meaningful upside as management continues to refine it.
Looking ahead, the bank also expects more notable share repurchases in 2026, supported in part by the $2.8 billion termination fee tied to Warner Bros. The bank likewise added that the streaming platform’s “well-insulated subscription-based model” justifies a premium valuation since recurring revenue and global scale provide resilience relative to more cyclical media peers.
Barclays reinstates Netflix stock coverage
At the same time, Barclays has reinstated coverage of Netflix, with an ‘Equalweight’ rating and a $115 price target.
According to Barclays, Netflix’s interest in Warner Bros. appeared aimed at scaling its intellectual property portfolio, including major film and television franchises.
However, the firm cautioned that while such a deal can shape valuation discussions for some time, it believes Netflix’s valuation is likely to “embed concerns” and sees risk beyond 2026.
The two new revisions have put the average NFLX share price target for the next twelve months at $114.18 at the time of writing.
This, according to thirty-nine analysts who’ve shared their takes on the stock in the past three months, implies a 19.37% upside potential from the current price target, as per the market analysis platform TipRanks.
With just one ‘Sell,’ eight ‘Hold,’ and thirty ‘Buy’ ratings, Netflix remains a ‘Moderate Buy.’
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