Netflix (NFLX) Stock: Deutsche Bank Sees Buying Opportunity After 26% Drop

TLDR

• Deutsche Bank upgraded Netflix to Buy from Hold, though it cut its price target to $95 from $100.
• Netflix stock has fallen 26% this year and sits 36% below its April high of $107.79.
• The stock rose 1% to $70.05 in premarket trading Tuesday after closing down 3% Monday.
• Analyst Bryan Kraft points to rising international engagement and AI as reasons for optimism.
• Wells Fargo and HSBC recently went the other way, downgrading Netflix on engagement worries.

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Netflix stock is trading around $70 after a rough stretch, but Deutsche Bank now sees a buying opportunity. The bank upgraded the stock to Buy from Hold, even as it trimmed its price target to $95 from $100.

Netflix, Inc., NFLX

Netflix stock has fallen 26% in 2026. It’s now down 36% from its April high of $107.79.

The stock rose 1% to $70.05 in premarket trading Tuesday. That followed a 3% decline on Monday.

Analyst Bryan Kraft argues investors are too focused on weak U.S. viewing trends. He says that view ignores Netflix’s larger international opportunity.

International engagement has grown year over year for four straight six-month periods, according to Kraft. More than 60% of Netflix’s production now happens outside the United States.

Netflix trades at about 18 times Kraft’s 2027 earnings estimate. That’s a steep drop from roughly 40 times forward earnings back in June 2025.

Kraft believes that lower multiple undervalues Netflix’s growth outlook. He sees room for the stock to re-rate into the low-to-mid 20s range.

Netflix’s International Edge

Deutsche Bank says the market’s focus on U.S. engagement numbers overlooks Netflix’s total addressable market. The firm points to healthier trends overseas as a reason for confidence.

This year’s U.S. softness could simply reflect fewer hit shows, the bank noted. That’s a different story than a structural drop in subscribers.

Kraft also described artificial intelligence as “more friend than foe” for Netflix. He pointed to potential uses in content production, personalization and advertising.

Wall Street Isn’t Fully On Board

Not every analyst agrees with the bullish call. Wells Fargo’s Steven Cahall downgraded Netflix to Underweight from Equal Weight last week.

Cahall slashed his price target too, cutting it to $57 from $80. HSBC made a similar move, downgrading Netflix to Hold from Buy.

Much of the caution comes from worries about slowing engagement. HSBC flagged that Alphabet’s YouTube is pulling viewer share away from Netflix.

Investors got spooked in July when Netflix said it would cut its engagement report to once a year instead of twice. That decision fueled speculation the company has been losing subscribers to rivals.

Deutsche Bank thinks those fears are overblown. Despite the split opinions, most firms still rate the stock favorably.

Of the 45 Wall Street firms tracked by FactSet, Netflix carries an average Overweight rating. The average price target sits at $93.57, with 28 Buy ratings and 17 Hold ratings.

Deutsche Bank’s own $95 price target implies about 37% upside from Netflix’s latest close.