Goldman Sachs upgraded Netflix (NASDAQ: NFLX) from “Neutral” to “Buy” on Monday, April 6, raising its price target from $100 to $120.
The new forecast implies a 26% upside from current levels, which analyst Eric Sheridan justifies by pointing to a more favorable risk-reward profile heading into the company’s first-quarter 2026 earnings release, set for April 16.
Further, the bank now expects the streaming platform to continue deploying capital toward content investment, particularly across live entertainment, creator-driven content, and gaming.
Overall, it sees potential for sustained shareholder returns over multiple years, supported in part by the roughly $2.8 billion merger termination fee received from PSKY.
Reacting to the upgrade, NFLX shares saw a 1.29% uptick, trading at $99.93 at the time of writing.
Goldman Sachs sees upside in Netflix
Looking ahead, Goldman anticipates strong execution across both original and returning titles, as well as progress on the company’s revamped user interface.
This outlook is underpinned by solid financials, including revenue growth nearing 16% and a gross margin of 48.5%.
The firm also highlighted increasing advertiser adoption for Netflix’s ad-supported tier, with recent channel checks suggesting a healthy advertising environment.
Moreover, rising uptake of the ad-supported plan and product enhancements are expected to help narrow the monetization gap with ad-free tiers.
Netflix stock price target
Taking Goldman Sachs’s new forecast into account, the average Netflix stock price target currently sits at $115.25, which sees the entertainment company rallying 16.82% over the next twelve months, based on TipRanks data.
With thirty-one “Buy,” nine “Hold,” and no “Sell” recommendation, Wall Street sees Netflix as a “Strong Buy.” The biggest price target in the past three months has been $150, while the lowest one sits at $95.
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