Guggenheim upgrades Netflix stock target, keeps buy rating on Q4 results

On Wednesday, Guggenheim analysts raised the price target on Netflix (NASDAQ:NFLX) shares to $1,100 from the previous $950, while reiterating a Buy rating. Currently trading at $869.68, the stock has delivered an impressive 79% return over the past year.

This adjustment follows Netflix's impressive fourth-quarter results, which exceeded guidance across all financial metrics. The streaming giant reported a record 19 million net member additions for the quarter, almost double the consensus estimate.

Netflix also announced price increases in several markets, including the U.S., and raised its full-year financial guidance despite facing additional foreign exchange headwinds compared to its initial 2025 outlook.

According to InvestingPro data, the company maintains a GREAT financial health score and has demonstrated solid revenue growth of 14.8% in the latest quarter. Guggenheim's analysts believe that the company's potential for growth remains strong, citing an expanded addressable market of over 750 million broadband homes outside of China and Russia. This suggests a 35% international penetration, compared to 66% in the U.S. market, which continues to grow.

Viewer engagement has also been on the rise, with domestic viewership in December growing by approximately 16% and reaching an all-time high U.S. TV share of 8.5%. Management has noted similar levels of engagement across both ad-supported and ad-free tiers, as well as in certain international markets where data is available, in comparison to the domestic market.

Looking ahead, Guggenheim analysts see new initiatives such as advertising sales, live content including sports and events, and video game offerings as additional drivers for sustained growth in the coming years. Based on these factors, the firm has raised its multi-year financial estimates for Netflix and increased the 12-month price target to reflect the company's strong performance and potential.

InvestingPro analysis indicates the stock is currently trading above its Fair Value, with a P/E ratio of 48x. Discover 14 additional exclusive ProTips and comprehensive valuation metrics for Netflix with an InvestingPro subscription, including the detailed Pro Research Report available for this entertainment industry leader.

In other recent news, Netflix has been the subject of multiple analyst upgrades and price target increases. Rosenblatt Securities upgraded Netflix's stock from Neutral to Buy, setting a price target of $1,494 following the company's strong fourth-quarter performance.

MoffettNathanson raised Netflix's price target to $850, citing expectations of accelerated revenue growth and EBIT margins for the years 2025 and beyond. Needham analysts also raised their price target from $800 to $1,150, following the company's substantial increase in subscribers and a forecast of ad revenue doubling in 2025.

Goldman Sachs adjusted its outlook, raising the price target to $960, following Netflix's strong fourth-quarter earnings, which surpassed both revenue and operating income expectations. Bernstein SocGen Group increased the price target from $780.00 to $975.00, following Netflix's impressive performance, surpassing expectations with recent subscriber additions.

Lastly, BofA raised its stock price target to $1,175, citing the company's consistent growth in subscriber numbers across all markets.

These adjustments reflect the recent developments and continued growth in Netflix's operations, including the expansion of its advertising-supported tier and the contributions from its gaming, live, and sports offerings. As these recent upgrades indicate, Netflix's robust financial performance and growth prospects continue to generate optimism among analysts.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.