Phillip Securities has upgraded Netflix (NASDAQ: NFLX) from a Sell rating to Accumulate and raised its price target to $100 from $95. The brokerage's revision follows a rollover of its valuation framework to fiscal year 2026, while its FY26 forecast, terminal growth and WACC assumptions remain unchanged.
At the time of the update, Netflix shares are trading at $86.12, with a market capitalization of $363.6 billion and a reported price-to-earnings ratio of 34. According to InvestingPro data cited by the firm, Netflix is trading close to its Fair Value, and analyst price targets among the coverage cohort range from $79 to $151.40.
Phillip Securities pointed to Netflix's "clear leadership in the VOD space and strong pricing power" as the principal factors supporting a more constructive stance on the stock. The firm acknowledged the potential for near-term volatility tied to the proposed Warner Bros. Discovery transaction but expressed confidence in Netflix's structural and financial positioning over the longer term.
The broader corporate backdrop includes active developments around the proposed acquisition of Warner Bros. Discovery's studios and streaming businesses. Federal Communications Commission Chairman Brendan Carr has raised concerns about the potential scale and consolidation effects of the $82.7 billion deal, flagging competition implications in the streaming market.
Netflix co-chief executive Greg Peters has signaled confidence in securing shareholder support for the acquisition. According to the reporting included in the update, only a minimal number of Warner Bros. Discovery shares have been tendered in response to Paramount's competing $108 billion offer.
Paramount has filed materials with the Securities and Exchange Commission opposing the Netflix-Warner Bros. proposal and has extended its own tender offer timeline to February 2026. These overlapping pursuits underline ongoing competitive dynamics in the media and streaming sectors.
On valuation and near-term guidance, Bernstein SocGen Group has recently lowered its price target for Netflix to $115, citing concerns about disappointing margin guidance despite what the firm described as solid performance in 2025. Bernstein SocGen Group retained an Outperform rating on the stock.
Phillip Securities concluded that, notwithstanding the potential for short-term market swings associated with the deal activity and bid competition, Netflix's market position supports its prospects for long-term growth.