Goldman Sachs: Netflix(NFLX.US) has a positive outlook on revenue growth and returns, raising the target price to $120.

LootboxPhobia · 2026-04-07T05:23:54+00:00

After divesting from Paramount's Day of Dance, Netflix will focus on content investment and shareholder returns. Goldman Sachs is optimistic about its future growth, upgrading the rating to "Buy" with a target price of $120, expecting that advertising revenue and subscription price increases will drive revenue growth. Netflix plans to return 20%-25% of its market value to shareholders over the next five years.

LootboxPhobia

2026-04-07 05:23:54

Abstract generation in progress

Zhitong Finance APP learned that, after getting out of the dispute over control of Warner Bros. (WBD.US) involving Paramount Tianwu (PSKY.US), Netflix (NFLX.US) can now focus on its “strategic roadmap,” meaning allocating capital to the content space, including more live events, and returning capital to shareholders. Therefore, given a more positive risk/reward profile and considering Netflix’s content lineup, Goldman Sachs upgraded the stock rating from “Neutral” to “Buy” and raised its target price by 20% to $120.

Goldman Sachs analyst Eric Sheridan believes that, thanks to the advertising business (expected to grow to approximately $9.5 billion by 2030) and increases in subscription prices, Netflix should be able to achieve double-digit revenue growth over the next three to four years.

Sheridan also believes that, over the next three years, Netflix’s annual GAAP operating profit margin will increase by 250 basis points, thanks to cost control, including “moderate” spending on content.

Finally, with the acquisition of Warner Bros. winding down, Netflix can begin returning capital to shareholders, with an expectation that 20% to 25% of its market value will be returned to investors over the next five years.

Sheridan’s view is consistent with that of most Wall Street and Seeking Alpha analysts, who believe Netflix is worth buying. Netflix will release its first-quarter results after the U.S. market close on April 16. It is expected to report non-GAAP earnings per share of $0.77 and revenue of $12.17 billion.

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