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Stock impact report

Goldman Sachs Upgrades Netflix to Buy Before Earnings [Yahoo! Finance]

Warner Bros. Discovery, Inc. - Series A (WBD) 
Company Research Source: Yahoo! Finance
Neutral, citing improved risk-reward ahead of its April 16 earnings report. The firm also raised its price target to $120, implying roughly 26% upside from current levels. The upgrade follows a 16% decline in Netflix shares over the past six months, a drop Goldman linked in part to overhang from the company's now-abandoned bid for Warner Bros. Discovery's ( NASDAQ:WBD ) assets. With Netflix having walked away from that deal and collecting a roughly $2.8 billion termination fee from Paramount Skydance ( NASDAQ:PSKY ), analyst Sheridan sees the company returning to a standalone execution story with room for a positive estimates revision cycle. Goldman's bull case runs on three tracks. The first is revenue from the March 2026 U.S. price hikes, which it estimates could add a cumulative $3 billion across 2026 and 2027 combined. The second is GAAP operating margin expansion of around 250 basis points annually over the next three years. Finally, capital returns, with management's $11 bil Show less Read more
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