Wall Street sets Netflix stock price target for next 12 months

Netflix’s (NASDAQ: NFLX) stock is experiencing a notable surge as investors reacted to the company’s latest move regarding its acquisition plans for Warner Bros.

In this case, NFLX shares ended the last session at $96.24, up approximately 13.8% from the previous day’s close of $84.59.

Why Netflix stock is rallying

The sharp rally followed Netflix’s announcement that it was withdrawing from its months-long bid to acquire certain assets of Warner Bros. Discovery (WBD), including its streaming and studio operations.

The company declined to match a superior offer from Paramount Skydance, which ultimately secured a deal valued at around $110 billion for Warner Bros. 

Netflix co-CEOs Ted Sarandos and Greg Peters said that raising the bid to compete would make the transaction “no longer financially attractive.” As part of its exit, Netflix received a $2.8 billion termination fee.

Investors responded positively, viewing the decision as a sign of disciplined capital allocation. The move allows Netflix to refocus on its core streaming business, original content production, and subscriber growth rather than pursuing a potentially costly and complex acquisition.

Wall Street’s take on Netflix stock 

On Wall Street, analysts remain bullish on the stock’s prospects over the next 12 months.

According to TipRanks data, Netflix carries a ‘Moderate Buy’ rating based on 37 recent analyst assessments. Of those, 28 recommend buying the shares, eight suggest holding, and one advises selling.

Over the past three months, analysts have set an average 12-month price target of $114.55, implying a potential upside of 19.02%. The highest target stands at $150, while the lowest forecast is $92.

Notably, Jefferies analysts turned constructive after Netflix withdrew its bid for Warner Bros. Discovery, arguing that its growth outlook remains strong without a major acquisition. In a note led by James Heaney and Jesse Chao, they projected roughly 10% revenue growth and a 20% compound annual increase in earnings per share, driven by resilient organic momentum. They dismissed concerns over declining hours per subscriber as overstated, citing strong churn metrics and net additions that show no weakening in demand. Jefferies maintains a ‘Buy’ rating with a $134 price target.

At Needham, analyst Laura Martin said exiting the deal removes regulatory uncertainty and other distractions while freeing up $2.8 billion in breakup funds. She believes the move preserves Netflix’s identity as a disruptive force and avoids overpaying for assets with weakening fundamentals. The firm has assigned a ‘Buy’ rating with a $120 price target.

Baird analyst Vikram Kesavabhotla expects the withdrawal to trigger a recovery in Netflix shares by removing the main uncertainty weighing on the stock. He remains confident in the company’s ability to adapt to industry changes and forecasts steady revenue growth and expanding operating margins.

Meanwhile, KeyBanc Capital Markets analyst Justin Patterson welcomed the end of the bidding war but cautioned that Netflix must continue investing in original programming and live events to sustain engagement and monetization, emphasizing that content spending will be critical to maintaining growth momentum.