Citi Says NFLX Has Ways of Reducing Tariff Pressures

After President Donald Trump suggested levying a 100% tariff on movies and shows made outside America, Citi stated that Netflix (NFLX) has a means of reducing the negative impact of such duties on its financial results.

However, the bank, which kept a Neutral rating on the name, warned that the potential tariffs could lower NFLX's earnings per share by 20% in a worst-case scenario.

The bank kept a $1,020 price target on NFLX.

Netflix's Potential Reactions

The company could make more of its movies in America, avoid allowing its U.S. subscribers to view content made overseas, and raise its subscription prices, Citi asserted.

The latter moves will likely limit the extent to which any tariffs levied by Trump will affect NFLX's financial results, the bank stated.

A Justified Reaction

After NFLX stock fell 5% in its initial reaction to Trump's statement, Citi believes that the move was justified.

As of early afternoon trading on May 6, NFLX stock had rebounded a great deal, rising 0.8%.

The Recent Price Action of NFLX

In the last month, the shares have gained 31%, while they have risen 15% in the last three months and advanced 28% so far in 2025.

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