Evercore ISI reaffirms Netflix (NFLX.US)'s “outperforming the market” rating, and is optimistic that live sports broadcasts and short videos will become a popular engine

The Zhitong Finance App learned that Evercore ISI raised the target price of the streaming platform NFLX.US (NFLX.US) from $100 to $110 and reaffirmed the “outperforming market” rating on the grounds that surveys in the US and Japan showed improved trends, and that live streaming events and short video content brought opportunities.

The new target price means there is about 42% upside compared to the latest closing price of the stock.

Analyst Kutgen Mallar said that Netflix's penetration rate in the US reached a multi-year high of 63%, while in Japan it reached a record 22%. Unsubscription intentions have improved in both markets, but user satisfaction in the US market is still a cause for concern.

The brokerage emphasized that live streaming events are a potential catalyst for subscriber growth. In Japan, 45% of the new subscribers surveyed said they signed up through Netflix's World Baseball Classic (World Baseball Classic) promotion; while the proportion of users who watched the live event rose from 42% in March to 60% in September.

Evercore also mentioned Netflix Clips — its short video stream; 46% of Japanese respondents and 38% of US respondents said they had viewed the feature.

Analysts said that live streaming events and short video content help drive user engagement and retention, while ad-inclusive packages continue to attract new subscribers and returning users.

Evercore believes Netflix is a sustainable 20% earnings per share growth share and says its catalytic path is more likely to unfold in 2027 rather than 2026.