Netflix shares jump after Goldman Sachs boosts target

Shares of streaming giant Netflix rose more than 1.5% in early premarket trading on Monday after Goldman Sachs raised its price target from $100 to $120 and upgraded its rating from “Neutral” to “Buy,” ahead of the company’s first-quarter results later this month.

The upgrade comes after Netflix walked away from its merger deal with Warner Bros., earning roughly $2.8 billion in termination fees from Paramount and Skydance Corp, News.Az reports, citing foreign media.

Analysts at Goldman now anticipate a positive revision cycle, viewing Netflix as a “standalone execution story.”

Goldman’s bullish outlook rests on three key factors:

1. Revenue Growth: Netflix is expected to see low double-digit revenue growth over the next three to four years, driven by higher paid subscriptions, increased revenue per user, and a growing advertising business projected to reach $9.5 billion by 2030. Recent U.S. subscription price increases could add an estimated $3 billion in revenue over 2026–2027.
2. Margin Expansion: Analysts forecast steady margin growth from moderate content spending and disciplined cost management. Netflix also projects $11 billion in free cash flow in 2026, benefiting from the cessation of prior M&A initiatives.
3. Share Buybacks: With the Warner Bros. merger now off the table, Netflix is expected to resume its share buyback program, potentially repurchasing 20–25% of its current market capitalization over the next five years.

News.Az 

By Nijat Babayev