Citi maintains Neutral rating on Netflix stock ahead of Q2 earnings

Investing.com - Citi has reiterated its Neutral rating and $1,250.00 price target on Netflix (NASDAQ:NFLX), currently trading near its 52-week high of $1,341.15, ahead of the streaming giant’s second-quarter 2025 earnings report. According to InvestingPro analysis, the stock appears overvalued at current levels, despite its impressive 86% return over the past year.

The company is scheduled to release its Q2 2025 results after market close on Thursday, July 17. Citi expects Netflix to report revenue and operating income slightly above consensus estimates, primarily due to favorable foreign exchange conditions. With a market capitalization of $543 billion and analysts forecasting EPS of $25.97 for FY2025, InvestingPro data reveals the company maintains a perfect Piotroski Score of 9, indicating strong financial health.

Citi anticipates investor attention will center on three key areas during the earnings call: updates regarding Netflix’s advertising tier performance, commentary on subscriber growth trends, and details about the company’s evolving strategy for live content.

The financial services firm maintained its existing price target of $1,250 for Netflix shares, suggesting limited upside potential from current trading levels.

Netflix has been expanding its content offerings beyond traditional streaming, with increasing investments in live programming as part of its growth strategy in a competitive streaming landscape.

In other recent news, Netflix is gearing up for its second-quarter 2025 earnings report, with TD Cowen projecting a 17% year-over-year revenue increase, driven by strong member growth trends. The firm has also raised its price target on Netflix to $1,440, citing the company’s robust content slate for the latter half of 2025. Barclays (LON:BARC), on the other hand, has increased its price target to $1,100, noting that Netflix’s content slate, including new seasons of "Stranger Things" and "Wednesday," will boost margins. However, Barclays expressed caution regarding Netflix’s advertising revenue, which has been trailing expectations. Seaport Global Securities downgraded Netflix to Neutral, highlighting the company’s efforts to increase user engagement and advertising revenue through new partnerships. Goldman Sachs raised its price target to $1,140, maintaining a Neutral rating, as it anticipates Netflix’s consumption habits and monetization trends to remain strong. Additionally, the release of "Squid Game" Season 3 set a new streaming record with 60.1 million views in just three days, marking it as Netflix’s ninth most-watched non-English TV show.

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