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Investing.com - KeyBanc has reiterated its Overweight rating and $1,390.00 price target on Netflix (NASDAQ:NFLX) following the company’s second-quarter report. The streaming giant, currently trading at $1,274.17 with a market cap of $542 billion, is trading near its 52-week high of $1,341.15.
The investment firm noted that Netflix’s quarterly results were in line with expectations, with revenue and margins benefiting from membership growth, pricing actions, and favorable foreign exchange rates. According to InvestingPro data, the company has achieved impressive revenue growth of 15% and maintains a healthy gross profit margin of 47%.
KeyBanc acknowledged that engagement metrics might become a near-term topic of debate among investors, as viewership directly influences Netflix’s monetization potential.
The firm expressed confidence in Netflix’s ability to continue creating popular content, which it believes will support future price increases and advertising revenue growth.
KeyBanc’s $1,390 price target represents a 35.1x price-to-earnings multiple based on the firm’s 2027 earnings estimates for the streaming company. Currently, Netflix trades at a P/E ratio of 58.8x, with analyst targets ranging from $726 to $1,600, reflecting varied opinions on the stock’s valuation.
In other recent news, Netflix’s second-quarter 2025 earnings report slightly exceeded expectations, with over 15% revenue growth across all markets, excluding foreign exchange impacts. The company reaffirmed its content budget of approximately $18 billion for fiscal year 2025. Oppenheimer reiterated an Outperform rating, increasing its fiscal year 2025 revenue guidance by 2% and raising its operating income forecast by 6%, citing accelerated subscriber growth and improved advertising monetization. Guggenheim raised its price target on Netflix to $1,400, maintaining a Buy rating, and expressed confidence in Netflix’s sustained value creation and broader revenue potential. Wolfe Research reiterated its Outperform rating with a $1,390 price target, anticipating over 20% compound annual growth in earnings per share through the remainder of the decade. Goldman Sachs increased its price target to $1,310, maintaining a Neutral rating, and noted Netflix’s potential to outperform its own guidance. The Netflix Ads Suite has been deployed across all 12 advertising markets, focusing on adding more demand partners and expanding capabilities. Raymond (NSE:RYMD) James maintained its Market Perform rating, acknowledging Netflix’s solid performance and improved outlook for the second half of 2025.
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