Netflix price target lowered to $125 from $149 at BofA

BofA analyst Jessica Reif Ehrlich lowered the firm’s price target on Netflix (NFLX) to $125 from $149 and keeps a Buy rating on the shares. Following the decision to walk away from the Warner Bros. Discovery (WBD) bidding process, Netflix’s strategy reverts back to “business as usual,” says the analyst, who updated the firm’s calendar year 2026 forecasts and now projects revenue of $51.3B, up 13% year-over-year, which is in line with company guidance of 12-14% growth. The firm lowers its multiple to reflect recent multiple compression in the comp group, but believes that Netflix will continue to outperform supported by its “world-class brand,” leading global subscriber scale, position as an innovator and increased visibility in growth drivers.