HSBC Research raises Netflix's target price to $114, maintaining a "Buy" rating

HSBC Research published a report stating that Netflix (NFLX.US) price adjustments and good user engagement trends indicate a strong start to the year, raising revenue and profit margin forecasts, with the estimated diluted earnings per share for the fiscal year 2026/2027 increased by about 2-3%. The rating is maintained at "Buy," with the target price raised from $106 to $114.

HSBC Research has raised its revenue forecast for Netflix in 2026 by about 1%, to the upper limit of the guidance range. This adjustment is based on the uplifting effect of recent price changes and the good trend in user engagement; at the same time, the estimated operating profit margin for 2026 has been raised to 31.8% (relative to the guidance of 31.5%), benefiting from the gradual elimination of one-time costs related to the Warner Bros. acquisition