Deutsche Bank Upgraded Netflix Following Stock Decline
Investors are weighing a new buy rating against a lowered price target after shares dropped 25% this year.
Updated on Oct. 1, 2026 in Stock Picks
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Deutsche Bank has upgraded Netflix stock from hold to buy as of September 29, 2026. The firm simultaneously lowered its price target to $95, citing the company's competitive advantage in international content production.
Why it matters
Analysts believe the current stock price undervalues the company's future growth potential despite a challenging year for its valuation. Netflix currently trades at 18 times its projected 2027 earnings per share, with some analysts forecasting that multiples could expand to the low-to-mid 20x range.
Netflix stock has declined 25 percent in 2026 and sits 44 percent below its 52-week high. Despite the lower $95 price target, projections suggest a potential upside of nearly 40 percent and 23 percent earnings growth in 2027.
The players
Deutsche Bank
A global financial institution that provides investment banking services, equity research, and analysis to institutional and individual investors.
Netflix
A streaming entertainment service that produces international and domestic content and trades on public stock exchanges.
The details
The upgrade reflects a shift in how analysts value Netflix, particularly regarding its ability to produce content outside of the United States, which now accounts for more than 60 percent of its production. While the new buy rating suggests optimism, investors should be aware of instruments like the Direxion Daily NFLX Bull 2X Shares, which seeks 200 percent of daily performance, or the Direxion Daily NFLX Bear 1X Shares, which provides inverse returns.
Timeline
June 2025: Netflix traded at 40 times forward earnings per share.
September 29, 2026: Netflix stock reached 44 percent below its 52-week high.
September 29, 2026: Deutsche Bank issued the note with the stock upgrade.
2027: Analysts project 23 percent earnings per share growth.
Money Landscape
The current trading multiple of 18 times projected 2027 earnings represents a significant contraction from the June 2025 valuation of 40 times forward earnings per share. This shift highlights a broader adjustment in how the market prices streaming growth relative to past performance expectations.
Investors should review their portfolio exposure to individual media stocks and consider how recent valuation shifts affect their risk tolerance. Consult a qualified financial professional before adjusting your holdings or reacting to analyst price targets.
The takeaway
Analyst ratings provide a snapshot of market sentiment but should be viewed as part of a larger financial plan rather than a trigger for immediate trades. Review your current portfolio allocation to ensure your holdings still align with your long-term risk and growth objectives.
Further reading
For more insight into market analysis, explore our Stock Picks section.
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