BMO Capital reiterated its Outperform rating and $135 price target on Netflix (NASDAQ: NFLX), citing expected revenue benefits from recent U.S. price increases.
The firm estimated that pricing adjustments could generate approximately $1.5 billion in incremental revenue in fiscal 2026, contributing around 3.3% growth from pricing alone.
While some investors have questioned the sustainability of Netflix’s pricing power amid slowing engagement growth, BMO said the investment case has become clearer following the separation from Warner Bros. Discovery-related dynamics, allowing investors to refocus on core fundamentals.
The firm also pointed to the long-term opportunity for Netflix to scale a substantial advertising business exceeding $10 billion in revenue.
