Netflix (NASDAQ: NFLX) saw a wave of price target cuts from major Wall Street analysts on Wednesday, January 21, following its latest earnings report.
Among the chief concerns were strong operational performance against rising content costs, as well as weak forward guidance and uncertainty surrounding a potential Warner Bros (NASDAQ: WBD) transaction.
As a result, Netflix’s stock price has fallen 3% on the day, trading at $85.12 at the time of writing.
NFLX stock price target. Source: FinboldWall Street cuts Netflix stock price target
Goldman Sachs, for instance, which lowered its Netflix price target from $112 to $100, maintaining a ‘Neutral’ rating, highlighted continued momentum in Netflix’s advertising-supported tier and robust free cash flow generation, but it noted that any Warner deals would need greater clarity before a more positive re-rating is warranted.
Similarly, Morgan Stanley trimmed its price target to $110 from $120, reiterating an ‘Overweight’ rating and arguing that much of the Warner-related risk is already evident in the stock prices. UBS cut its NFLX share price more drastically, from $150 to $130, but it kept a ‘Buy’ rating, noting that Netflix is accelerating investment to support long-term growth.
Further, BMO Capital Markets lowered its Netflix price forecast from $143 to $135, maintaining an ‘Outperform’ rating. Analysts pointed primarily to disappointing 2026 guidance, with revenue barely exceeding consensus expectations.
Next, Guggenheim lowered its expected figure from $145 to $130, with a ‘Buy’ rating. According to the analysts, strong Q4 results were offset by softer engagement trends and a weaker profit outlook for this year. Warner Bros. acquisition was again cited as detrimental to near-term sentiment.
Canaccord Genuity also reduced its NFLX stock price target from $152 to $125, although it doubled down on its ‘Buy’ rating. The primary reason for the cut, the note stated, is increased content investment, which is expected to limit margin expansion in the near term.
Eleven analysts lower their Netflix price target
TD Cowen also made a modest cut, from $115 to $112, still calling the stock a ‘Buy.’ However, the firm described Q4 results as a modest beat and noted the Warner acquisition is a potential strategic tailwind.
Conversely, Piper Sandler was the most severe, slashing its Netflix share price target from $140 to $103. Elaborating on the revision, the firm cited strong execution in Q4 but said that content reinvestment and deal-related concerns are weighing heavily on share prices.
Wolfe Research dropped the predicted target from $121 to $95 from $121, keeping an ‘Outperform’ rating. Analysts cautioned that revenue growth comes at a higher cost, namely, margin pressure tied to growing expenses and Warner deals.
Rosenblatt cut its price target to $94 from $105, reiterating a Neutral rating, citing a subscriber outlook slightly below expectations and the firm’s decision not to assume completion of the Warner transaction in its model.
Finally, KeyBanc Capital Markets slightly nudged its price target down from $110 to $108, maintaining an ‘Overweight’ rating. Although Netflix’s standalone growth remains intact, analysts warned that near-term concerns around engagement, spending, and Warner uncertainty remain a challenge.
New Netflix stock price target
Despite all the cuts, the average Netflix price target for the next 12 months, which sits at $117.06, still has a nearly 39% upside potential. This is according to 39 analyses accumulated on the market analysis platform TipRanks in the past 90 days.
NFLX stock price target. Source: TipRanksThe figure thus suggests that the market is still overall positive on the streaming platform, meaning that most of the concerns cited above do indeed appear short-term rather than long-term headwinds in the eyes of major firms.
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Source: https://finbold.com/analysts-set-netflix-stock-price-target/
