Following the conclusion of the bidding contest for Warner Bros. assets between Netflix and Paramount's Skydance, Citi has reinstated its coverage of the streaming giant Netflix with a "Buy" rating and a $115 price target. The bank identified several catalysts that could drive Netflix's stock price up by 5% to 17%, including the company raising its full-year EBIT guidance, implementing a price increase in the U.S. during the fourth quarter, and a larger share repurchase program. Citi stated on Wednesday that many investors believed Netflix would be unlikely to raise prices during a period of regulatory scrutiny related to mergers and acquisitions. However, the bank now sees no reason for Netflix not to proceed, questioning only whether the company possesses sufficient pricing power, to which Citi affirmed it does. Citi also emphasized that Netflix's substantial content budget gives it a scale advantage over competitors, which is expected to provide a competitive edge in the coming years. The bank noted that challenging Netflix's competitive position would require rivals to increase their content investments. However, Citi views this as unlikely in the near term, citing Disney and Peacock's current focus on profitability and the high leverage of other competitors. The sole risk Citi currently identifies for Netflix is a potential decline in advertising revenue expectations. Market consensus projects Netflix's ad revenue to reach $11 billion by 2030, down from an April 2025 estimate of $12 billion, with the possibility of a further decrease to approximately $9 billion.