Goldman Sachs raises Netflix stock price target to $1,000

On Monday, Goldman Sachs updated its outlook on Netflix stock (NASDAQ:NFLX), increasing the price target from $955 to $1,000 while keeping a Neutral rating on the shares. The adjustment follows Netflix’s Q1 2025 earnings release, which showcased a robust financial performance, exceeding revenue expectations and demonstrating strong operating income and margins. With a perfect Piotroski Score of 9 according to InvestingPro, Netflix’s financial health score stands at an impressive 3.12, rated as GREAT. The stock currently trades at $973.03, with analyst targets ranging from $710 to $1,494.

Netflix’s earnings have been buoyed by a strategy that effectively balances content investment with capital returns, enhancing earnings per share. This approach has contributed to the company’s momentum in both current operations and future prospects, reflected in its strong 15% revenue growth and 41% return on equity. Goldman Sachs analyst Eric Sheridan highlighted the company’s success in maintaining a stable monetization and consumption pattern, a significant factor considering the market’s growing concerns over consumer discretionary behavior. InvestingPro data reveals 13 analysts have recently revised their earnings estimates upward for the upcoming period, suggesting growing confidence in Netflix’s trajectory.

The investment firm’s stance on Netflix as a consistent double-digit revenue grower remains unchanged, with expectations for the company to further improve its operating margins in the years ahead. Following the recent earnings report and management’s commentary, Goldman Sachs revised its operating estimates upward, leading to the raised 12-month price target.

Netflix’s recent earnings have not altered the prevailing investor narrative about the company’s defensive monetization and consumption habits. This performance, coupled with management’s strategic direction, suggests a steady outlook for the streaming giant. Despite the positive earnings report, Goldman Sachs maintains a Neutral rating, indicating a belief that the risks and rewards of investing in Netflix are evenly balanced at this time.

In other recent news, Netflix reported first-quarter earnings that exceeded market expectations, with revenue growth and profitability surpassing its own guidance. Canaccord Genuity responded by raising its price target for Netflix shares to $1,200, maintaining a Buy rating, while Oppenheimer also increased its target to $1,200, citing successful pricing strategies and robust subscription growth. Guggenheim and UBS similarly raised their price targets to $1,150, highlighting Netflix’s strong performance and revenue growth that outpaced estimates. Raymond (NSE:RYMD) James maintained a Market Perform rating, noting that subscriber churn was less significant than anticipated despite price increases in key markets.

Netflix’s management has confirmed its 2025 guidance, with revenue growth expected to continue due to price adjustments and a favorable foreign exchange environment. The company’s second-quarter guidance projects higher revenue and operating margins than consensus estimates, driven by content releases and advertising technology investments. Analysts from Oppenheimer and UBS highlighted Netflix’s strategic focus on its ad-supported tier and the resilience of its business model amid economic fluctuations. Notably, Netflix’s financial strategy includes a significant stock repurchase, reflecting confidence in its growth trajectory.

Looking forward, Netflix anticipates increased expenses in the latter half of the year due to the return of popular series and investments in advertising technology. Despite these challenges, analysts remain optimistic about Netflix’s ability to maintain its market position and achieve its financial targets.

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