Citi raises Netflix stock price target to $1,295 from $1,259

Published 18/07/2025, 20:32
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Investing.com - Citi maintained its Neutral rating on Netflix (NASDAQ:NFLX) while raising its price target to $1,295 from $1,259 following the streaming giant’s second-quarter results. The stock, currently trading at $1,207.56, has delivered an impressive 98% return over the past year. According to InvestingPro data, Netflix maintains a perfect Piotroski Score of 9, indicating strong financial health.

The adjustment reflects Citi’s updated model incorporating Netflix’s Q2 2025 performance and revised outlook. The investment bank has increased its revenue forecast for the company, aligning with Netflix’s current revenue growth of 14.84%. InvestingPro analysis shows 11 analysts have recently revised their earnings estimates upward for the upcoming period.

Citi lowered its 2025 earnings per share estimate slightly, citing expectations for higher operating expense growth in the second half of the year as Netflix continues to invest in its advertising platform.

The firm’s earnings per share estimates for 2026 and 2027 were revised modestly higher, contributing to the price target increase.

Citi analyst Jason Bazinet maintained a Neutral stance on Netflix stock despite the price target adjustment.

In other recent news, Netflix reported strong second-quarter results, highlighting a 17% year-over-year revenue growth on a foreign exchange neutral basis. The company exceeded analyst expectations with an operating income growth of 45% and delivered earnings per share of $7.19. Netflix also reported a free cash flow of $2.3 billion, driven by revenue outperformance and strategic expense timing. The streaming giant raised its full-year revenue and operating income margin guidance, with expectations of a 30% operating margin, up from the previous 29% target. Analysts from Jefferies, Bank of America Securities, UBS, and Rosenblatt have maintained or raised their price targets, citing Netflix’s robust growth outlook and strong performance. Jefferies increased its target to $1,500, while UBS and Bank of America set theirs at $1,495 and $1,490, respectively. Rosenblatt made a minor adjustment, raising its target to $1,515. Loop Capital, however, maintained its Hold rating with a $1,150 price target, citing valuation concerns despite the positive results. Analysts noted that Netflix’s growth was supported by increased membership, higher subscription pricing, and growing advertising revenue.

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