Netflix Stock Forecast: Why Analysts Predict 40% Upside in 2026

As investors look ahead to 2026, Wall Street has differing views on streaming giant Netflix (NFLX). Morgan Stanley (MS), led by five-star analyst Benjamin Swinburne, rates the stock as a Buy, even after lowering its price target from $150 to $120. Importantly, the firm still sees Netflix as offering a compelling risk-reward setup. In particular, Morgan Stanley believes that Netflix can remain resilient in a weaker global economy, thanks to its strong engagement, as members watch nearly two hours of content per day.Claim 70% Off TipRanks This Holiday SeasonUnlock hedge fund-level data and powerful investing tools for smarter, sharper decisions Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential Is Netflix's WBD Acquisition a Risk? However, Morgan Stanley is more cautious when it comes to the possibility of Netflix acquiring Warner Bros. Discovery (WBD). Swinburne warned that such a deal would face regulatory hurdles and result in limited synergies. Indeed, while the combined company could see GAAP earnings per share improve by the second year, the firm estimates that the transaction would actually be 10% to 15% dilutive to free cash flow per share. As a result, Morgan Stanley views a major acquisition as a potential risk rather than a clear positive catalyst for the stock. Interestingly, though, Bank of America (BAC) takes a more optimistic view. Analysts there, including five-star-rated Jessica Reif Ehrlich, maintain a Buy rating and a $149 price target on Netflix. They also argue that acquiring WBD's studio and streaming assets could immediately give Netflix a deep library of proven intellectual property that would be difficult to build organically in a short period of time. Moreover, the firm highlights that Netflix's global scale, the strong performance of its ad-supported tier, its growing reach among younger audiences, and a strong content slate are key factors supporting a bullish long-term outlook. Is NFLX Stock a Good Buy? Overall, analysts have a Moderate Buy consensus rating on NFLX stock based on 26 Buys, nine Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average NFLX price target of $131.86 per share implies 40.8% upside potential.