BofA Securities reiterates Buy rating on Netflix stock, citing strong position

Investing.com - BofA Securities has reiterated its Buy rating and $1,490.00 price target on Netflix (NASDAQ:NFLX), currently trading near its 52-week high of $1,341.15, ahead of the company’s second-quarter 2025 earnings report due July 17. According to InvestingPro analysis, Netflix appears overvalued at current levels, despite maintaining a perfect Piotroski Score of 9.

The investment firm expects Netflix’s Q2 2025 results to be at least in line with guidance on key metrics including revenue, operating income, and earnings per share. BofA forecasts Q2 revenue of $11.04 billion and operating income of $3.68 billion, both essentially matching Netflix’s guidance.

BofA’s earnings per share forecast stands at $7.05, slightly above Netflix’s guidance of $7.03, with the firm noting that foreign exchange movements could drive modest upside given USD weakening during the quarter.

Netflix stock has been a top performer in BofA’s coverage universe, rising approximately 42% year-to-date, driven by sustained earnings momentum, positive subscriber trends, and defensiveness related to tariffs.

BofA continues to view Netflix as well-positioned given the company’s unmatched scale in streaming, further runway for subscriber growth, significant opportunities in advertising and sports/live content, and continued earnings and free cash flow growth. The company maintains an "GREAT" financial health score according to InvestingPro, which offers 20+ additional insights and a comprehensive Pro Research Report for deeper analysis.

In other recent news, Netflix has been the focus of several analyst updates, reflecting a range of perspectives on the company’s financial outlook. Wedbush reiterated its Outperform rating, maintaining a $1,400 price target, citing confidence in Netflix’s strategies to enhance ad tier revenue and live events. Piper Sandler raised its price target from $1,150 to $1,400, supported by strong revenue projections starting in the third quarter of 2025. Needham increased its price target to $1,500, highlighting Netflix’s impressive revenue per full-time employee, which outpaces other major tech firms. KeyBanc also raised its target to $1,390, projecting potential revenue growth driven by live events and advertising expansion. Meanwhile, Citi maintained a Neutral rating with a $1,250 price target, anticipating slightly above-consensus earnings in the upcoming Q2 2025 report. These recent developments underscore the diverse analyst opinions on Netflix’s growth strategies and financial performance.

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