Bernstein cuts Netflix stock price target on 2027 uncertainty

Bernstein SocGen Group lowered its price target on Netflix Inc. (NASDAQ:NFLX) to $80, down from $95, while keeping an Outperform rating. With Netflix trading at $68.69, near its 52-week low of $65.08, the stock has fallen 45% over the past year. Despite the decline, analysts believe the stock may be undervalued, with a P/E ratio of 21.6 and a low PEG ratio of 0.6, suggesting a favorable valuation compared to growth prospects.

The investment firm noted that discussions surrounding Netflix's future are increasingly centered around 2027, as the company approaches the end of 2026 and faces limited outcomes. During this time, Netflix's guidance for 2026 suggests revenue falling below the midpoint of its previous 13% to 14% growth forecast, with margins remaining steady at 31.5%.

The company's full-year advertising revenue of $2.7 billion indicates healthy, though not doubled, growth at 80% year-over-year, falling short of the company's prior goals and investor expectations. Netflix's strong content leadership remains focused on traditional content, live events, and licensing, with any major strategic shifts potentially taking years to reflect in the lineup or financials.