Netflix Stock Price Target Trimmed As Analyst Remains Bullish

Netflix (NFLX) is facing headwinds as analysts adjust their outlook on the media and entertainment sector, impacting the stock's near-term potential. Wolfe Research lowered its price target on Netflix to $121 from $139, while maintaining an “Outperform” rating, signaling a cautious yet still positive view on the streaming giant's prospects.

The revision comes amid a broader assessment of the media, entertainment, telecom, and cable sectors for 2026, with Wolfe Research recommending an overweight position in live entertainment and music. The firm downgraded the telecom and cable group to “Market Weight,” citing ongoing deterioration in key performance indicators observed in the latter half of 2025, suggesting a challenging environment for companies reliant on traditional telecom and cable services.

This sector-wide reassessment adds pressure on Netflix, as investor sentiment becomes more sensitive to broader industry trends.

Despite the trim, the new price target continues to reflect a potential upside of 25% from this morning's pre-market price action ($96.20, +1.05%)

Adding to the complexity, Netflix's ambitious $72 billion acquisition of Warner Bros. Discovery's (WBD) film studio and streaming assets continues to generate mixed reactions. While the acquisition aims to bolster Netflix's content library and strengthen its competitive position, it has also raised concerns about potential regulatory hurdles and integration challenges. 

Analyst reactions to the acquisition have been varied, leading to further price target adjustments. Pivotal Research Group downgraded Netflix from “Buy” to “Hold,” reducing the price target from $160 to $105, citing concerns that the expensive deal reflects Netflix's apprehension about the rise of short-form entertainment platforms.

Rosenblatt Securities also downgraded Netflix, moving to “Neutral” from “Buy” and lowering the price target from $152 to $105, pointing to uncertainties in the regulatory review process and questioning Netflix's alternative strategies if the acquisition fails.

Jefferies adopted a more cautious stance, maintaining a “Buy” rating but reducing the price target from $150 to $134, reflecting the evolving competitive landscape and potential integration risks. However, Needham reiterated a “Buy” recommendation with a price target of $150, expressing confidence in Netflix's long-term growth prospects despite current market volatility.

By and large, although targets are shifting to the downside, the message from Wall St. continues to reflect upside in the stock, with markets also moving NFLX higher this morning. The headlines are not enough when assessing any stock, with plenty more to be learned by digging under the hood for the details.