Netflix (NASDAQ: NFLX) shares climbed 0.70% in premarket trading after BMO Capital reiterated its Outperform rating and $135 price target on the streaming giant.
BMO’s bullish stance is grounded in proprietary consumer research the firm says confirms Netflix’s continued dominance across the U.S. streaming landscape.
In a survey of 940 U.S. consumers, BMO found that 75% of respondents subscribe to Netflix, a figure that underscores the platform’s unrivaled household penetration.
Among those surveyed, 37% named Netflix their most preferred streaming platform, a share BMO noted is twice that of the nearest competitor.
The firm also pointed to valuation as a key part of its argument, stating the stock currently trades at 16.1x fiscal 2027 estimated adjusted EBITDA, a 31% discount to its five-year average.
BMO further highlighted Netflix’s scaling advertising business as a catalyst set to accelerate revenue growth specifically in the United States and Canada.
Engagement metrics from the survey added further weight to the bull case, with 76% of Netflix subscribers saying they use the platform multiple times a week.
The research also revealed that 37% of subscribers have tried Netflix’s podcast offering and 36% have engaged with its games feature, with early users reporting high satisfaction in both categories.
BMO interpreted that data as evidence that Netflix’s strategic push beyond film and television is gaining traction rather than diluting the quality of its core service.
The optimistic call arrives just days after Wells Fargo moved in the opposite direction, downgrading Netflix to Underweight with a price target of just $57, citing softening viewership and a thinner content slate in the second half of the year.
Wells Fargo’s cautious view was part of a broader industry read, noting that 39% of Americans dropped at least one streaming subscription over the past six months.
Evercore ISI currently holds a middle-ground position on the stock, maintaining a $110 price target that sits between the two sharply divergent Wall Street calls.
The wide gap between analyst targets reflects deep uncertainty on Wall Street over how Netflix will navigate slowing subscriber growth, intensifying competition, and a monetization shift toward advertising.
