Deutsche Bank Bets on Netflix Recovery, Upgrades Stock to 'Buy'
Netflix shares rose 1.4% in pre-market trading after Deutsche Bank upgraded the stock from "Hold" to "Buy," setting a price target of $95. The upgrade follows a months-long decline that saw the stock approach the lower end of its 52-week trading range.
Deutsche Bank’s positive recommendation comes despite recent downgrades from other banks—including HSBC and Wells Fargo—driven by concerns over weak subscriber engagement and a lack of standout content. Conversely, the bullish outlook is supported by the company's projections for approximately 12% revenue growth in the third quarter and an operating income growth target exceeding 20% for the year.
Thus, Deutsche Bank’s upgrade serves as the primary catalyst for the stock's pre-market rise, even as challenges regarding competition and subscriber engagement persist.
