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Investing.com - KeyBanc has raised its price target on Netflix (NASDAQ:NFLX) to $1,390.00 from $1,070.00 while maintaining an Overweight rating on the streaming giant. The stock currently trades at $1,288.28, with a P/E ratio of 59.34x, reflecting its premium valuation as a dominant entertainment industry player.
The investment firm cited Netflix’s potential for low double-digit percentage revenue growth over the medium term, driven by a combination of live events, price increases, and advertising revenue expansion. The company is already demonstrating strong momentum with 15% revenue growth in the last twelve months.
KeyBanc projects Netflix could reach nearly $40 in earnings per share by 2027, supporting its new price target which represents a 35x price-to-earnings multiple on 2027 estimated earnings.
The analyst note acknowledged potential near-term volatility for Netflix shares, which have outperformed the broader market with approximately 45% gains year-to-date compared to the NASDAQ’s roughly 7% increase.
Despite concerns about content catalysts following Wednesday and Stranger Things series in the second half of 2025, KeyBanc expressed confidence in Netflix’s track record of producing surprise content hits and its new focus on live events to maintain consistent user engagement.
In other recent news, Netflix is set to release its second-quarter 2025 earnings report, with Citi expecting revenue and operating income to slightly exceed consensus estimates due to favorable foreign exchange conditions. Barclays (LON:BARC) raised its price target for Netflix to $1,100, citing the company’s upcoming content slate, including new seasons of "Stranger Things" and "Wednesday," as well as NFL content. TD Cowen also increased its price target to $1,440, anticipating a 17% year-over-year revenue growth driven by strong member growth trends. Meanwhile, Seaport Global Securities downgraded Netflix to Neutral, noting the company’s efforts to boost advertising revenue and explore new partnerships. Despite the downgrade, Seaport Global adjusted its forecasts for Netflix, incorporating greater global price increases and a significant boost in advertising revenue estimates by 2030. Goldman Sachs raised its price target to $1,140, maintaining a Neutral rating and highlighting Netflix’s robust content slate for the second half of 2025. Analysts from various firms are focusing on Netflix’s evolving strategies, including its advertising tier performance and live content investments, as key areas of interest for investors.
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