Netflix (NASDAQ: NFLX) has retained Wall Street support despite recent concerns over engagement trends, with TD Cowen maintaining its bullish stance on the streaming giant ahead of third-quarter earnings later this month.

The firm reiterated its ‘Buy’ rating and $100 price target on October 5, arguing that Netflix remains positioned for double-digit revenue growth, margin expansion, and higher free cash flow over the coming years.

At Netflix’s current share price of $67.06, the target implies upside of about 49%.

TD Cowen also expects the company’s earnings per share to grow at an annualized rate of roughly 19% between 2026 and 2031, excluding one-time items.

The analyst’s view is based on expectations that Netflix can continue growing revenue while improving profitability through a combination of subscription growth, advertising, and newer content formats.

According to the firm’s latest note, concerns over softer engagement trends have overshadowed several emerging growth drivers.

TD Cowen highlighted live content, podcasts, vertical video initiatives, and the company’s advertising-supported tier as areas that could boost engagement while supporting subscriber growth and retention.

While the firm modestly lowered some operating income and EBITDA estimates for the coming years, it maintained its $100 valuation target after rolling its discounted cash flow model forward to 2027.

The analyst also pointed to Netflix’s relatively modest valuation compared to its long-term growth outlook. Based on TD Cowen’s estimates, the stock trades at about 17 times projected 2027 earnings, while the $100 target implies a multiple of roughly 25 times expected earnings.

Wall Street bullish on Netflix stock 

TD Cowen’s latest call broadly aligns with Wall Street sentiment. Analyst consensus data currently at TradingView rates Netflix a ‘Buy’, with the average 12-month price target standing at approximately $92.53. The highest target on the stock is $135, while the lowest forecast is $57.

Investors are now focused on Netflix’s third-quarter earnings report scheduled for October 20. Wall Street expects the company to post earnings of about $0.82 per share on revenue of roughly $12.87 billion to $12.88 billion, representing year-over-year revenue growth of nearly 12%.

Those estimates are broadly in line with Netflix’s own guidance issued alongside second-quarter results, when the company projected third-quarter revenue of $12.86 billion and earnings per share of $0.82.

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