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Investing.com - Guggenheim reiterated a Buy rating and $130.00 price target on Netflix Inc. (NASDAQ:NFLX) as the company prepares to report first-quarter 2026 earnings in just two days. The streaming giant currently trades at a P/E ratio of 40.85, and InvestingPro data suggests the stock is overvalued relative to its Fair Value, though the company maintains a "GREAT" financial health score of 3.28.
The firm noted that Netflix abandoned its pursuit of Warner Bros. Discovery on February 26. The company implemented price increases across all U.S. tiers in March 2026 and management has guided for ad revenue to roughly double to approximately $3 billion in 2026.
Guggenheim’s analysis of weekly global Top Ten data through March 29 showed first-quarter viewership roughly flat year-over-year at 0.2%. Nielsen Gauge data from January 2026 showed Netflix at 8.8% of total TV viewing share, representing a 3.2% year-over-year viewership decline, the first since June 2025.
The firm noted Netflix is expected to generate approximately $11 billion in free cash flow in 2026. Guggenheim identified four potential paths for capital deployment: smaller strategic acquisitions, expanded sports rights, replicating the TF1 partnership model globally, or aggressive capital return.
The firm said the first-quarter earnings call will be critical for understanding management’s strategic priorities. For investors seeking deeper insights, Netflix is among the 1,400+ US equities covered by comprehensive Pro Research Reports, which transform complex Wall Street data into clear, actionable intelligence.
In other recent news, Netflix is set to release its first-quarter earnings on April 16, with analysts providing various insights and expectations. Evercore ISI has reiterated an Outperform rating with a $115 price target, anticipating revenue of $12.2 billion, a 15.5% increase year-over-year, and earnings per share estimated at $0.76. Deutsche Bank has raised its price target from $98 to $100 while maintaining a Hold rating, citing higher operating income and earnings per share estimates. TD Cowen continues to support a Buy rating with a $112 price target, forecasting 4.56 million net subscriber additions for the quarter. Benchmark, maintaining a Hold rating, has adjusted its forecast to account for potential subscriber churn due to price increases. Morgan Stanley has also increased its price target to $115, maintaining an Overweight rating and predicting sustainable double-digit revenue growth. These developments provide varied perspectives on Netflix’s performance and future prospects.
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