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Loop Capital is becoming very bullish on Netflix . The investment firm upgraded shares of the streaming giant to a buy rating from hold. Analyst Alan Gould accompanied the move by raising his price target to $1,350 per share from $1,150. Gould’s revised forecast implies another 12% upside for the stock, which has surged 35% this year. Gould pointed to a strong fundamental backdrop for Netflix, admitting that his prior downgrade of the stock was a mistake. NFLX YTD mountain NFLX YTD chart “We are upgrading our rating back to Buy based on exceptional 3Q engagement, a strong 4Q content slate, higher long-term margin assumptions as each dollar of content is generating more revenue, which leads to higher earnings and free cash flow,” he wrote. “Our NFLX downgrade in mid-December with the stock in the low $900s was wrong, but after a strong first half, the stock has tread water the past quarter. At the time of our downgrade management was guiding to 11-13% revenue growth in 2025; it is now 16-17%.” The analyst credited titles such as the third “Squid Games” season, the second “Wednesday” season and “KPop Demon Hunters” for increasing Netflix’s engagement. Gould also raised his third-quarter estimates and expects management to raise its full-year revenue guidance. The company has a track record of exceeding its revenue guidance around 75% of the time. Gould also highlighted Netflix’s dominant position as an entertainment giant, even amid stiff competition. The analyst believes that investors are “overly concerned” with potential rivals. “NFLX’s has won the streaming wars, and even with stronger competition from David Ellison’s PSKY or PSKY/WBD, we believe NFLX has the global customer and content scale, technological advantage and cash flow to maintain its growth and dominance,” he wrote. “NFLX’s is trending towards a record share of U.S. TV consumption for the platform in 3Q. The U.S. is over 40% of total revenue and NFLX’s total revenue has historically been strongly correlated with its U.S. share of TV consumption.” Netflix shares rose by more than 1% in the premarket following the upgrade. Most analysts are bullish on Netflix . Of the 50 who cover the stock, 35 rate it a buy or strong buy, according to LSEG. ( Learn the best 2026 strategies from inside the NYSE with Josh Brown and others at CNBC PRO Live. Tickets and info here . )
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