Key TakeawaysDeutsche Bank shifted its rating on Netflix to Buy from Hold, while reducing its price target from $100 to $95.The streaming giant’s shares have dropped 26% year-to-date and are down 36% from the April peak of $107.79.Shares gained 1% to reach $70.05 during Tuesday’s premarket session following a 3% Monday decline.Deutsche Bank’s Bryan Kraft highlights growing global engagement and artificial intelligence opportunities as catalysts.Contrasting views emerged as Wells Fargo and HSBC recently downgraded the stock over engagement concerns.Trading near $70, Netflix shares have caught the attention of Deutsche Bank, which believes the recent weakness presents a compelling entry point. The firm elevated its stance to Buy from Hold, despite lowering its price objective to $95 from $100.Netflix, Inc., NFLXShares of Netflix have tumbled 26% throughout 2026. The stock currently sits 36% beneath its April zenith of $107.79.In Tuesday’s early trading, the stock climbed 1% to $70.05. This uptick came after Monday’s 3% pullback.Deutsche Bank analyst Bryan Kraft contends that the market is overly fixated on underwhelming domestic viewing metrics. According to Kraft, this perspective fails to account for Netflix’s substantial international expansion runway.Global engagement has climbed on a year-over-year basis across four consecutive six-month intervals, Kraft notes. Over 60% of the company’s content creation now originates from markets beyond U.S. borders.The stock currently trades at approximately 18 times Kraft’s 2027 earnings projection. This represents a dramatic compression from the roughly 40 times forward earnings multiple seen in June 2025.According to Kraft, this compressed valuation fails to reflect Netflix’s growth trajectory. He anticipates the stock could command a multiple in the low-to-mid 20s range.Global Expansion Fuels OptimismDeutsche Bank maintains that Wall Street’s emphasis on domestic engagement data fails to capture Netflix’s full market potential. The investment bank highlights stronger performance in overseas markets as justification for its bullish stance.The bank suggests this year’s U.S. weakness may stem from a lighter slate of blockbuster programming rather than fundamental subscriber erosion.Kraft characterized artificial intelligence as offering “more friend than foe” dynamics for Netflix. He identified opportunities in content creation, recommendation algorithms, and advertising optimization.Divergent Analyst PerspectivesDeutsche Bank’s optimism doesn’t reflect universal Wall Street sentiment. Wells Fargo analyst Steven Cahall recently moved Netflix to Underweight from Equal Weight.Cahall dramatically reduced his price objective as well, dropping it to $57 from $80. HSBC followed suit with a downgrade to Hold from Buy.The bearish arguments center primarily on decelerating engagement metrics. HSBC specifically cited competition from Alphabet’s YouTube, which appears to be capturing audience attention away from Netflix.Market sentiment soured in July after Netflix announced plans to reduce its engagement reporting frequency from biannual to annual updates. The change sparked conjecture that the company faces intensifying competitive pressure.Deutsche Bank dismisses these concerns as exaggerated. While opinions vary, the broader analyst community maintains a generally positive outlook.Among 45 Wall Street analysts monitored by FactSet, Netflix holds an average Overweight rating. The consensus price target stands at $93.57, with 28 analysts recommending Buy and 17 suggesting Hold.Deutsche Bank’s $95 price target suggests potential upside of approximately 37% from the stock’s most recent closing price.The post Netflix (NFLX) Stock Gets Deutsche Bank Upgrade Despite 26% Year-to-Date Decline appeared first on Blockonomi.