Deutsche Bank Upgraded Netflix Stock to Buy

The bank remains bullish on Netflix long-term potential despite lowering its overall price target to $95.

Updated on Oct. 1, 2026 in Stock Picks

Deutsche Bank Upgraded Netflix Stock to Buy

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Deutsche Bank has upgraded Netflix stock from hold to buy, citing the company's international production capabilities as a major competitive advantage. Analysts believe the firm's growth prospects are currently undervalued by the market.

Why it matters

The upgrade suggests that analysts view the recent 25 percent decline in Netflix share value during 2026 as an overcorrection. The bank expects the company to capitalize on its massive global production footprint to drive future earnings.

Netflix currently trades at 18 times projected 2027 earnings, with a target price of $95. The company is projected to achieve 23 percent earnings per share growth in 2027, supported by production where over 60 percent occurs outside the United States.

The players

Deutsche Bank

This is a German multinational investment bank and financial services company that provides a range of financial products and services to corporate and institutional clients.

Netflix

This is a global streaming entertainment service that produces and distributes content to millions of subscribers across the world.

The details

Despite the upgrade, Deutsche Bank lowered its price target for Netflix to $95 from $100. The stock has struggled significantly this year, sitting 44 percent below its 52-week high as of September 29, 2026.

In June 2025, Netflix traded at 40 times forward EPS.
As of September 29, 2026, Netflix stock was 44 percent below its 52-week high.
Deutsche Bank issued its note containing the stock upgrade on September 29, 2026.
Netflix is projected to reach 23 percent EPS growth in 2027.

Market Dynamics

This upgrade follows a period of significant volatility that saw Netflix lose 25 percent of its stock value throughout 2026. The shift signals a broader move by institutional analysts to identify oversold growth stocks as multiples contract from previous historical highs.

Retail investors may see volatility continue if the price remains 44 percent below its 52-week high while market multiples reset. Those tracking the stock should note that inverse and leveraged ETFs, such as the Direxion Daily NFLX Bear 1X or Bull 2X shares, amplify the daily performance swings of the underlying stock.

The takeaway

Investors looking at media stocks should weigh international growth potential against current valuation multiples rather than focusing solely on past performance. Maintaining a long-term perspective is essential when dealing with stocks that have faced significant double-digit declines.