Jefferies raises Netflix stock price target to $1,500 on solid Q2 results

Published 18/07/2025, 16:30
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Investing.com - Jefferies raised its price target on Netflix (NASDAQ:NFLX) to $1,500 from $1,400 while maintaining a Buy rating following the streaming giant’s second-quarter results. The stock, currently trading at $1,212.15, has delivered an impressive 42.95% return year-to-date and maintains a perfect Piotroski Score of 9 according to InvestingPro.

The investment firm cited Netflix’s solid performance, which included 17% year-over-year foreign exchange neutral revenue growth, slightly higher than the 16% recorded in the first quarter.

Netflix’s management raised its fiscal year 2025 operating income growth guidance to 30%, up from the previous forecast of 29%, according to Jefferies.

The firm highlighted the acceleration of revenue growth in the United States and Canada region to 15% year-over-year, up from 9% previously, suggesting limited customer churn despite recent price increases.

Jefferies expressed confidence that Netflix can maintain over 20% earnings per share growth over the next three to five years, supporting its continued Buy recommendation.

In other recent news, Netflix reported a strong second-quarter performance with a 15.9% year-over-year revenue growth, surpassing its guidance of 15.4% when adjusted for foreign exchange effects. The company’s operating income reached $3.78 billion, while earnings per share were reported at $7.19, along with a free cash flow of $2.3 billion. Netflix has also raised its full-year outlook for both revenue and operating income margin. Analysts from Bank of America Securities reiterated a Buy rating for Netflix, citing its sustainable growth drivers, while UBS raised its price target to $1,495, maintaining a Buy rating due to the company’s strong growth outlook. Loop Capital kept a Hold rating with a $1,150 price target, noting positive results but citing valuation concerns. Rosenblatt increased its price target slightly to $1,515, also maintaining a Buy rating, and highlighted concerns about user engagement. MoffettNathanson raised its price target to $1,400, maintaining a Buy rating, and emphasized Netflix’s forecasted earnings growth through 2027. These developments reflect Netflix’s ongoing momentum in revenue and subscriber growth, driven by increased pricing and advertising revenue.

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