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On Tuesday, KeyBanc Capital Markets maintained its positive stance on Netflix, Inc. (NASDAQ:NFLX) by reiterating an Overweight rating and a $1,000.00 price target. The firm’s analyst highlighted the potential for increased monetization for the streaming giant, referencing a theoretical framework for the year 2030 that suggests significant revenue growth driven by advertising and other initiatives. According to InvestingPro data, Netflix currently trades at $931.28, with analyst targets ranging from $700 to $1,494, reflecting the market’s varied outlook on the company’s growth potential.
The analyst’s commentary pointed out that while it’s uncertain if Netflix will discuss the 2030 targets during Thursday’s earnings report, the projections—which include a compound annual growth rate (CAGR) of 5% for membership and 12% for revenue—appear reasonable. These figures indicate that Netflix is transitioning from focusing on membership growth to enhancing monetization strategies. The company’s recent performance supports this trajectory, with revenue growing 15.65% over the last twelve months and maintaining a perfect Piotroski Score of 9, according to InvestingPro analysis.
According to the analyst, Netflix’s advertising revenue is expected to reach $9 billion, accounting for approximately 11.5% of its total revenue. This shift emphasizes the company’s efforts to diversify its revenue streams beyond subscription fees. With current annual revenue of $39 billion and a strong gross profit margin of 46%, Netflix demonstrates solid fundamentals for this strategic expansion.Want deeper insights into Netflix’s financial health and growth potential? InvestingPro subscribers have access to over 30 additional premium insights and a comprehensive Pro Research Report, helping investors make more informed decisions.
The report also suggested that the upcoming earnings discussion might pivot towards investment strategies during potential economic downturns and the expansion of Netflix’s advertising business, including efforts to attract direct response advertising budgets.
KeyBanc’s confidence in Netflix is reflected in the maintained $1,000 price target, which is based on a 32.5 times multiple of the company’s estimated 2026 earnings per share. The firm’s analyst sees these growth targets as an opportunity for Netflix to reorient investor queries towards its long-term investment and monetization strategies.
In other recent news, Netflix is preparing to release its first-quarter earnings for 2025, with expectations of slightly higher revenue and EBIT than analysts have projected, attributed to favorable foreign exchange conditions, according to Citi. The anticipation of these results has drawn attention to Netflix’s progress on its advertising-supported tier and its strategy for sports content. BofA Securities has reiterated a Buy rating on Netflix, setting a price target of $1,175, and emphasized the company’s goal to double its revenue by 2030, with significant growth in advertising revenue expected. Meanwhile, Goldman Sachs has adjusted its price target for Netflix to $955, maintaining a Neutral rating, citing the market’s perception of Netflix as a defensive stock amidst various economic discussions.
Wedbush has maintained an Outperform rating with a price target of $1,150, highlighting Netflix’s potential to increase its ad tier revenue through live events and enhanced advertising solutions. KeyBanc has also made adjustments, reducing its price target to $1,000 while keeping an Overweight rating, with expectations of significant earnings growth in the coming years. The firm’s analysis suggests that Netflix can achieve long-duration growth despite challenges in advertising revenue and price increases. These developments indicate varied analyst perspectives on Netflix’s strategic initiatives and financial outlook. As the company continues to adapt its business model, investors are closely monitoring its performance and future strategies in the competitive streaming landscape.
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