Goldman Sachs upgraded Netflix to Buy from Neutral, lifting its 12‑month price target to $120 from $100.
Netflix shares fell 18% in six months, partly from overhang of the abandoned Warner Bros. Discovery deal that paid a $2.8 billion fee.
Goldman expects advertising revenue to grow from $1.5 billion in 2025 to $4.5 billion by 2027 and $9.5 billion by 2030.
Goldman forecasts 250 bps annual GAAP margin expansion over three years and expects Netflix to repurchase ~20‑25% of market cap in five years.