Jefferies Reaffirms Buy Rating on Netflix With $85 Price Target

Analyst firm Jefferies maintained its Buy rating for Netflix, Inc. (NASDAQ:NFLX) while setting an $85 price target, which implies roughly 20% upside from its recent price of $70.57. Analysts project the streaming company can generate 11% annual revenue growth from 2026 through 2029, supported by steady subscriber gains, subscription price increases, and expanding ad sales.

Pricing power remains a key driver for long-term growth, as Netflix's standard tier in the United States currently costs about 60% less per viewing hour than rival services. Average revenue per member is expected to increase by 6% annually over the next three years, while advertising revenue could expand from $3 billion in 2026 to $7.5 billion by 2029. Additionally, content-cost efficiencies and advertising growth are forecast to expand operating margins by approximately 190 basis points each year through 2029, alongside more than $50 billion in projected free cash flow over three years to fuel stock buybacks.

Investors should monitor near-term headwinds, including audience engagement trends and potential corporate acquisitions, which could temporarily weigh on market sentiment. Clarity on these factors is expected by 2027, potentially helping drive valuation expansion over time.