An analyst issued a 'Strong Buy' rating for Netflix. The analyst set a one-year price target of $114. This suggests a potential 63% upside from its current trading price.
The positive outlook stems from research indicating improved content quality. The research cites higher average IMDb ratings for most-watched series and movies. These ratings cover the first half of 2026 compared to the previous year.
The analysis also points to strong future capital generation. It projects Netflix could generate over $80 billion in free cash flow. This free cash flow would occur between 2026 and 2030. It could be allocated to share buybacks.
The analyst maintains this optimistic view. This is despite research suggesting a mid-single-digit decline in average daily viewing time per member. This decline occurred during the first half of the year.