KeyBanc reiterates Overweight rating on Netflix stock, sets $1,390 target

Investing.com - KeyBanc maintained its Overweight rating on Netflix (NASDAQ:NFLX) with a price target of $1,390.00 in a research note released Thursday. According to InvestingPro data, Netflix demonstrates strong financial health with a perfect Piotroski Score of 9, though current trading levels suggest the stock is slightly overvalued relative to its Fair Value.

The investment firm stated it does not anticipate any major surprises in Netflix’s upcoming third-quarter earnings report, scheduled for October 21, noting that an improving content slate drove stronger viewership during the period. The company’s revenue has grown nearly 15% over the last twelve months, with a robust gross profit margin of 48.5%.

KeyBanc acknowledged that fourth-quarter catalysts, including the release of "Stranger Things," are already well-known to market participants and factored into expectations.

The firm indicated it expects more modest margin expansion commentary for 2026, given that 2025 is tracking ahead of expectations, but suggested investors likely anticipate this outlook already.

KeyBanc expressed the view that monetization catalysts, including pricing adjustments and advertising initiatives, are developing for 2026 and could sustain higher revenue growth longer than currently projected.

In other recent news, Netflix announced a partnership with Spotify to bring video podcasts to its platform starting in early 2026. This collaboration will initially launch in the United States and includes popular shows like The Bill Simmons Podcast and Conspiracy Theories. In financial updates, Jefferies maintained its Buy rating and $1,500 price target for Netflix, expressing confidence in the company’s projected revenue growth of over 17% year-over-year for the third quarter. Meanwhile, Morgan Stanley removed Netflix from its Top Pick list but maintained an Overweight rating and a $1,500 price target, citing automatic drop criteria.

Seaport Global Securities upgraded Netflix’s stock rating from Neutral to Buy, setting a price target of $1,385. The upgrade is based on potential advertising revenue growth. Additionally, Bernstein reiterated its Outperform rating and $1,390 price target, while discussing Netflix’s potential interest in acquiring Warner Bros. Discovery. These developments highlight ongoing strategic moves and analyst perspectives on Netflix’s market position and growth potential.

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