Guggenheim Reiterates Buy Rating on Netflix (NFLX)

Guggenheim analyst Michael Morris reiterated a Buy rating and $120.00 price target on Netflix (NASDAQ: NFLX).

The analyst commented: "We remain BUY rated on Netflix shares into Thursday's earnings despite investor caution reflected in Guggenheim TMT Specialist Seth Ostrie's survey data showing Netflix as the top short idea into 2Q earnings (summarized within). Since 1Q earnings, shares are down ~32% versus the S&P 500 up mid-single digits, with the stock trading at an ~1.2x PEG on our 2026E adjusted EPS of $3.24 (which excludes the WBD termination fee, net). The overarching question for shares is whether the 2030 growth framework reported by the Wall Street Journal on April 14, 2025 ($78B revenue, $9B advertising, $30B operating income, 38% operating margin, 410M members, source) remains achievable through the current business, or whether competitive pressures and changes in consumer demand have altered the trajectory. With this in mind, we see three items to watch on 2Q26 earnings: 1) how core financial and engagement trends are pacing into 2H26, specifically whether full-year revenue guidance is revised and what the semi-annual "What We Watched" report indicates on viewership; 2) how incremental initiatives are impacting engagement and content cost (TF1 partnership launch, expanded short-form and podcast rollouts, the July 13 MLB Home Run Derby); and 3) how the company addresses the question of investment for growth in light of management's April comment that Netflix has developed its "M&A muscle" balanced against the "nice to have" WBD characterization, combined with the subsequent $25B buyback authorization."

For an analyst ratings summary and ratings history on Netflix click here. For more ratings news on Netflix click here.

Shares of Netflix closed at $73.53 yesterday.

You May Also Be Interested In

• Kratos Defense & Security (KTOS) Reiterated at Buy by Stifel on ~400M Funding Disclosure
• Universal Logistics (ULH) PT Lowered to $15 at Stifel on Remaining a 'Show-Me Story'
• GXO Logistics Inc. (GXO) PT Lowered to $70 at Stifel After Prior-Quarter Beat