Netflix shares jump after Evercore raises target to $110

Netflix shares rose about 4.3% on Monday after Evercore ISI increased its price target to $110 from $100 and kept an Outperform rating. The new target implies roughly 42% upside from the stock’s prior close.

Evercore based its assessment on its 58th quarterly U.S. subscriber survey and a semi-annual survey in Japan. The surveys showed stronger engagement and lower churn intentions. U.S. penetration reached a multi-year high of 63%, while penetration in Japan climbed to a record 22%. Churn intentions improved in both markets, though customer satisfaction remained a concern in the U.S.

The firm highlighted live programming and short-form videos as drivers of engagement and subscriber growth. In Japan, 45% of newly surveyed subscribers linked their sign-up to Netflix’s World Baseball Classic promotion. The share of users who had watched live events rose to 60% in September from 42% in March.

Netflix’s short-form feed, Clips, also recorded usage: roughly 46% of Japanese respondents and 38% of U.S. respondents reported scrolling through the feature. Evercore’s survey indicated the advertising-supported tier has attracted new and returning subscribers.

On the financial side, Netflix management is targeting a 31.5% operating margin for 2026, up from 29.5% a year earlier and 26.5% two years prior. Content costs increased 11.5% in the first half of 2026, while total viewing hours rose 2% year over year. The company’s advertising business is on track to generate about $3 billion this year.

Netflix repurchased a record $4.7 billion of its shares in the second quarter. The board authorized an additional $25 billion in buybacks, leaving $27.1 billion available under existing authorizations at the end of June.

Evercore extended its valuation framework to 2028, applying a 25-times multiple to its 2028 earnings-per-share estimate and describing Netflix as capable of roughly 20% sustainable EPS growth, while noting clearer catalysts are more likely to appear in 2027 than in 2026. Another broker maintained a Buy rating with a $100 price target.