Sing more immediately after the ban is lifted! Netflix (NFLX.US) received a "buy" rating from JP Morgan, with a target price of $120.

JPMorgan recently lifted the research restrictions on Netflix (NFLX.US) and resumed coverage with a "hold" rating for the streaming giant. The analysis from the institution pointed out that a strong content library, global subscriber growth, pricing power, and an early-stage advertising business will drive organic growth for the tech media company. Analysts believe that the advertising-supported tier will continue to contribute high-margin revenue growth while expanding the user base. "Netflix's advertising revenue is expected to grow by over 150% in 2025, and is projected to double to $3 billion in 2026. With continuous optimization of targeted advertising and measurement technology, this business segment has significant development momentum," JPMorgan stated in a report released on March 2. The report also predicts that due to the $2.8 billion termination fee from Warner Bros. Discovery (WBD.US) and the current attractive stock price levels, Netflix will maintain strong free cash flow generation in 2026 and is expected to increase stock repurchases. On the application of artificial intelligence, JPMorgan believes that algorithm recommendations will improve content discovery efficiency and personalized experience, while advertising solutions and evaluation systems will be optimized to control production costs. "Narrative ability and talent reserves, as core moats, will better equip Netflix to withstand industry disruptions brought by AI technology," the institution emphasized. JPMorgan has set a target price of $120 for Netflix, implying a potential upside of nearly 25% from the current stock price.