HSBC analyst Mohammed Khallouf initiated coverage on Netflix, Inc. (NASDAQ:NFLX) on January 12, 2026, assigning a 'Buy' rating and setting a price target of $107. Khallouf cited a valuation reset and improving fundamentals for the streaming company.
The analyst noted that Netflix's stock valuation remains 33% below its summer 2025 peak. He pointed to expectations for increased monetization, growing profitability, and significant international growth opportunities that offset a maturing U.S. streaming market.
Khallouf described Netflix as the undisputed global streaming leader. He highlighted the company's growing openness to acquisitions as reflecting strategic adaptation amid slowing industry growth.
Separately, Reuters reported on January 8, 2026, that investors hold mixed views regarding Paramount Skydance's $108.40 billion bid for Warner Bros. Discovery. The offer amounts to $30 per share.
This bid competes with Warner Bros. Discovery's finalized $27.75-per-share deal with Netflix, valued at $82.70 billion. Warner Bros.' board has favored Netflix's proposal due to stronger financing and lower debt risk.
Several investors have pointed toward Paramount's all-cash offer, calling it superior. The ongoing situation reflects Netflix's financial credibility as a buyer.
Netflix, Inc. is a global entertainment company that offers streaming video, gaming, and digital content across domestic and international markets.