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Investing.com - Citizens maintained its Market Perform rating on Netflix Inc. (NASDAQ:NFLX), according to a note from analyst Matthew Condon.
The firm expects Netflix to report better-than-expected first-quarter 2026 results, with potential upside to 2026 earnings per share driven primarily by recent U.S. price increases.
Citizens highlighted Netflix’s long-term structural advantages, including its scale and global distribution, which support its ability to raise prices while continuing to outspend competitors on content.
The analyst noted that shares have re-rated following Netflix’s decision to walk away from the Warner Bros. Discovery acquisition and the announcement of U.S. price increases. The stock now trades at a P/E ratio of 41.91 and an EV/EBITDA multiple of 33.43, closer to its five-year historical averages. According to InvestingPro analysis, Netflix currently appears overvalued relative to its Fair Value, with the stock trading at high earnings multiples—one of 16+ ProTips available to subscribers. The streaming giant reports earnings in just one day.
Citizens said it awaits a more attractive entry point before becoming more constructive on the shares.
In other recent news, Netflix is preparing to report its first-quarter earnings for 2026. Analysts from Evercore ISI expect the company’s revenue to reach $12.2 billion, reflecting a 15.5% year-over-year increase, with operating income projected at $3.94 billion and earnings per share estimated at $0.76. KeyBanc has raised its revenue and earnings per share estimates for 2026 and 2027, citing a durable monetization algorithm and cost reductions related to Warner Bros. Discovery. MoffettNathanson also increased its price target to $120, driven by anticipated growth in advertising revenue. Guggenheim reiterated its Buy rating, noting Netflix’s price increases across all U.S. tiers and management’s guidance for ad revenue to double to approximately $3 billion in 2026. Deutsche Bank raised its price target to $100, based on higher operating income and earnings per share estimates. These developments highlight the ongoing adjustments and expectations surrounding Netflix’s financial performance and strategic decisions.
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