HSBC initiated coverage on Netflix (NFLX), assigning a 'Buy' rating. The bank set a price target of $107.00 per share.
HSBC's positive outlook cites three key factors: deepening monetization, improving profitability, and a sizable international opportunity. These elements, the bank believes, can offset challenges within the maturing U.S. market.
The valuation applies a 34x multiple to HSBC's 2026 estimated earnings per share forecast.
The analysis follows Netflix’s significant bid for Warner Bros. Discovery. HSBC notes this move reflects the growing challenges of a maturing video streaming industry, despite Netflix retaining a leading position with over 300 million subscribers.