BofA lifts Netflix stock price target to $1,490 on strong growth

On Friday, BofA Securities analyst Jessica Reif Ehrlich increased the price target for Netflix (NASDAQ:NFLX) stock to $1,490 from the previous $1,175 while maintaining a Buy rating. The adjustment reflects the streaming giant’s robust performance and growth prospects. With a market capitalization of $504 billion and trading near its 52-week high of $1,215.91, InvestingPro data suggests Netflix is currently trading above its Fair Value.

Ehrlich highlighted Netflix’s impressive year-to-date performance, with InvestingPro data confirming a 32.93% year-to-date return and an outstanding 82.94% gain over the past year. This surge is attributed to sustained earnings momentum and positive subscriber trends, with the last report in January revealing a significant gain of approximately 19 million net additions in the fourth quarter. The company’s perfect Piotroski Score of 9 further underscores its financial strength. Additionally, Netflix has experienced a defensive rotation in response to tariffs, although this has become less pronounced in the past month.

According to Ehrlich, Netflix remains well-positioned within the streaming industry due to its unparalleled scale. The company is expected to continue its subscriber growth trajectory and has considerable opportunities to expand into advertising and sports/live content. Furthermore, the analyst anticipates ongoing growth in earnings and free cash flow for Netflix.

Netflix’s strategic positioning and the favorable outlook presented by BofA Securities underscore the company’s potential for sustained success in the competitive streaming market. The raised price target is a testament to Netflix’s continued ability to capitalize on market opportunities and deliver growth.

In other recent news, Netflix has been the focus of several analyst updates and strategic developments. Evercore ISI raised its price target for Netflix shares to $1,350, maintaining an Outperform rating, while TD Cowen also increased its target to $1,325, citing growth in Netflix’s ad-supported tier. However, JPMorgan downgraded Netflix from Overweight to Neutral, even as they lifted the price target to $1,220, due to the stock’s high valuation.

In terms of content, Netflix announced the addition of Sesame Street to its programming lineup, with both new and past episodes set to premiere on the platform later this year. This move comes amid changes in federal funding for public broadcasting. Additionally, Reed Hastings, Netflix’s co-founder, has joined the board of directors at Anthropic, a company focused on AI development, highlighting his ongoing interest in technology’s societal impact.

Netflix continues to innovate its advertising strategies, planning to introduce interactive and shoppable ads by the end of 2025. The company’s in-house advertising technology is expected to enhance data analytics and creative formats, with ad revenues projected to double year-over-year in 2025. These developments reflect Netflix’s broader strategy to expand its market presence and capitalize on the growing demand for ad-supported content.

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