Evercore ISI Raises Its Target Price For Netflix Stock; Strong Survey Data Drives Netflix's Stock Price Surge!
On Monday, Evercore ISI raised its target price for Netflix from $100 to $110, while maintaining an "outperform" rating. Currently, Netflix's P/E ratio is 24.4, with a P/E growth ratio of 0.67, making its valuation attractive relative to its growth prospects. This research report has clearly become the direct driver of the influx of buying interest. The bank extended its valuation framework to 2028, calculating the target price based on 25 times its 2028 earnings per share forecast, and noted that the new target price still implies about 45% upside compared to the stock's previous trading price. The core catalyst for this price increase is Evercore ISI's 58th Q4 U.S. User Subscription Survey. The survey shows that Netflix's user penetration rate has climbed to a multi-year high of 63%, further confirming the agency's judgment that Netflix still has significant pricing power, and user loyalty far exceeds the level implied by the current sluggish stock price.
Recently, the overall market performance has been weak, dragging down the market. Large tech and growth stocks are generally under pressure, and market sentiment leans toward risk aversion. Netflix's strong rise against this backdrop clearly shows that this rally is entirely driven by the company's fundamentals. The stock's 52-week price range is $65.08 to $124.86, indicating significant room for recovery from its historical high. Netflix's Q2 2026 results continue to provide solid fundamental support, with quarterly revenue reaching $12.56 billion and net profit $3.4 billion.
In the Japanese market, 58% of subscribers said it is unlikely or will not cancel at all, the highest proportion in the survey; The satisfaction score in the Japanese market reached 67%. Additionally, among new ad-supported subscription users in Japan, 66% are returning or new Netflix users.
In the US market, 35% of users considering canceling said they would opt for ad-supported plans rather than unsubscribe directly. The standard ad-supported plan continues to drive new subscriber growth in both markets and effectively reduces churn.
In other developments, Netflix announced price increases for services in Germany and Austria, affecting a significant number of subscribers in the region. The adjustments included price increases for ad-included packages, standard plans, and premium plans. Meanwhile, Netflix is actively expanding into Southeast Asia, partnering with Shopee to launch a new subscription plan called "ShopeeVIP+," providing users in Indonesia, Thailand, and the Philippines with Netflix access and other benefits.
Market Insight:
Netflix is entering the U.S. high-rated bond market, planning to raise funds to repay about $1 billion in debt maturing later this year. This marks Netflix's return to the bond market since its first bond issuance two years ago. Overall, based on the latest in-house survey data and combined with robust financial fundamentals, Netflix's stock price has risen significantly during trading.
