KeyBanc Cuts PT on Netflix, Inc. (NFLX) to $110 From $139

Netflix, Inc. (NASDAQ:NFLX) is one of the best stocks to buy in 2026 for beginners. On January 16, KeyBanc cut the price target on Netflix, Inc. (NASDAQ:NFLX) to $110 from $139 and maintained an Overweight rating on the shares, with uncertainty around the Warner Bros. Discovery deal expected to be one of the factors creating near-term overhangs to the price-to-earnings multiple. The company also received a rating update from Wedbush on January 15, which cut the price target on the stock to $115 from $140 and maintained an Outperform rating.

In another development, BMO Capital reaffirmed a Buy rating on Netflix, Inc. (NASDAQ:NFLX) on January 14 and set a price target of $143.00. The firm cited several factors that overshadow near-term headline risks for the company, as well as the investor sentiment shrouded in uncertainty surrounding its proposed acquisition of Warner Bros and worries about slower growth in 2026.

The firm highlighted that even if the acquisition deal falls through, Netflix, Inc. (NASDAQ:NFLX) would receive a sizable break-up fee, which would meaningfully offset its content spending. It added that despite the above mentioned concerns, the company’s underlying operating trends remain healthy, with the firm’s model remaining unchanged and expecting around mid-teens revenue growth into 2025, which might ease only modestly in 2026.

Despite Netflix, Inc.’s (NASDAQ:NFLX) considerable planned content investments, BMO Capital sees potential for operating margin expansion over the upcoming several years, supported in part by efficiency gains, including from AI.

Netflix, Inc. (NASDAQ:NFLX) provides entertainment services through paid memberships in around 190 countries worldwide. It acquires, produces, and licenses content for streaming, including original programming.

While we acknowledge the potential of NFLX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.