Deutsche Bank Upgrades Netflix to Buy, Cuts Price Target to $95

GuruFocus·29 Sep 2026·

2▲0 ▼0Impact / 5

Summary · why it matters

Deutsche Bank analyst Bryan Kraft upgraded Netflix to Buy from Hold while cutting his price target to $95 from $100, a level that still implies roughly 37% upside from the stock's last close. The upgrade comes even as Kraft lowered his operating income and free cash flow estimates following Netflix's second-quarter results. Kraft argued the market's focus on U.S. viewing time may be overshadowing stronger international trends, noting Netflix's international engagement has increased year over year in each of the past four six-month periods and that more than 60% of its production now takes place outside the United States. He said Netflix's scale, brand and organizational expertise could eventually support a broader Netflix As A Platform business, and described artificial intelligence as more friend than foe, pointing to applications across content production, personalization and advertising. On valuation, Netflix now trades at about 18 times Kraft's 2027 earnings estimate, versus roughly 40 times forward earnings in June 2025, and he believes the multiple could expand into the low-to-mid 20s.