Wells Fargo Downgrades Netflix to Underweight, Cuts Price Target to $57

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โดย GuruFocus·

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Wells Fargo downgraded Netflix to Underweight from Equal Weight and cut its price target to $57 from $80, sending the shares down 3.04% in premarket trading. Analyst Steven Cahall cited declining viewership and a weaker content slate in the second half of 2026, estimating viewership falls 4% year over year in that period, including a drop of more than 20% in Top 100 Netflix Originals, after reviewing more than 150 key titles across live events, shows and films. Hours per subscriber per day for Top 100 Originals fell 3% in the first half, and US TV share has slipped below 8% on Nielsen data, with Cahall modeling total second-half hours at 96 billion in his base case. Wells Fargo cut 2027 and 2028 EPS to $3.77 and $4.52 and lowered operating margin estimates to 32.6% and 34.2%. The $57 target rests on 15x 2027 earnings, down from 21x, and Cahall points to the second-half and full-year viewership report due in January 2027 as the negative catalyst.