The streaming giant is picking up speed as it leans further into its new business model. On Tuesday, April 14, 2026, KeyBanc analyst Justin Patterson reiterated his “Buy” rating on Netflix (NFLX) and raised his price forecast from $108 to $115.
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Forget margin or options. Here's how the pros trade AMZNThis new target suggests an 11.48% upside from the current price of $103.16. Patterson, a highly-rated analyst on TipRanks with a 6.30% average return, believes the company’s shift toward advertising and crackdowns on password sharing are starting to pay off in a big way.
Netflix’s Ad-Tier Growth Drives Higher Earnings
The main driver behind today’s bullish report is the rapid growth of the Netflix “Basic with Ads” plan. According to the note, the company is successfully converting free viewers into paying subscribers without losing its premium audience.
In today’s report, Patterson stated that “Netflix’s advertising tier is scaling faster than anticipated,” which is helping the company grow its revenue even in a crowded market. He noted that the company is effectively using its massive content library to keep people watching, which in turn makes its ad space more valuable to big brands. Patterson believes this “significant momentum” in the ad business will be the primary engine for the stock over the next year.
Password Sharing Crackdown Bolsters Netflix’s Subscriber Base
Another key factor in today’s target increase is the continued success of the paid sharing initiative. By making it harder for users to share accounts for free, Netflix has forced millions of people to start their own subscriptions.
The report highlights that these new members are sticking around longer than expected. Patterson wrote today that “subscriber retention remains remarkably high” despite the price increases and policy changes. The analyst points out that as Netflix rolls this program out to more countries, the company’s bottom line will continue to benefit from “found” revenue that was previously being left on the table.
Content Strategy Keeps Netflix in the Lead
Despite facing stiff competition from Disney+ (DIS) and Amazon (AMZN), Netflix remains the king of original programming. The company’s ability to produce global hits like Squid Game and Stranger Things gives it a level of “pricing power” that other streamers struggle to match.
Justin Patterson noted that the company’s focus on “high-quality, localized content” is what separates it from the pack. Because Netflix is now making more money from each user, it can afford to spend more on the shows that keep people from canceling. KeyBanc believes that this cycle of better content leading to better revenue makes Netflix one of the safest bets in the media world today.
Is Netflix Stock a Buy or Sell?
Turning to Wall Street, NFLX stock carries a Strong Buy consensus rating. Among the 39 analysts covering the stock, 30 have issued Buy recommendations, and nine rate it as Hold. Moreover, the average Netflix stock price target of $115.84 implies a 12.3% upside potential from current levels.
