MoffettNathanson reiterated a Buy rating and $1,400 price target on Netflix Inc. (NASDAQ: NFLX), arguing that recent share weakness presented an attractive entry point as the streaming giant’s growth opportunities remain intact.
The firm acknowledged that Netflix’s post-third-quarter selloff had reignited debate over the company’s long-term trajectory, with bearish narratives centering on slowing engagement growth, potential content depth issues, and greater exposure to licensed programming amid possible industry consolidation.
However, the analysts said Netflix continued to show strong potential for sustainable engagement growth through original content and live programming, including sports. They also highlighted opportunities for monetization across the advertising tier and broader platform expansion.
MoffettNathanson projected faster growth could come from more aggressive ad-tier pricing and enhanced ad monetization via Netflix Ads Suite and third-party DSP integrations. Adding $1 to both global ad-tier ARM metrics for 2027 would, according to the firm, boost total ad-tier revenue by 16% and lift earnings estimates by up to 9%.
The brokerage maintained its $1,400 price target, representing a 36.4x multiple on its 2027 EPS estimate and a PEG ratio of 1.47, below the S&P 500 average.
