Netflix stock price target maintained at $1,425 by BMO Capital

Investing.com - BMO Capital reiterated its Outperform rating and $1,425.00 price target on Netflix (NASDAQ:NFLX) following the streaming giant’s third-quarter 2025 results. The stock, currently trading near its 52-week high of $1,341.15, has delivered an impressive 34.56% return year-to-date, according to InvestingPro data.

Netflix delivered revenue in line with expectations for the third quarter, showing solid 14.84% year-over-year growth, but faced challenges with operating income. A $619 million expense related to an ongoing dispute with Brazilian tax authorities resulted in an 8% miss on operating income and a larger earnings per share shortfall. Despite these challenges, InvestingPro data shows Netflix maintains a perfect Piotroski Score of 9, indicating strong financial health.

The company’s fourth-quarter 2025 guidance aligns with BMO Capital’s estimates, supported by what the firm describes as a robust upcoming programming slate.

BMO Capital noted that Netflix’s advertising business remains in early stages but is positioned to more than double revenue in 2025. This growth is attributed to strong U.S. upfront commitments that are expected to benefit both 2025 and 2026 performance.

The firm maintained its Outperform rating and $1,425 price target on Netflix stock based on these factors.

In other recent news, Netflix reported its third-quarter 2025 earnings, revealing a notable miss on earnings per share (EPS) expectations. The EPS was reported at $5.87, which fell short of the anticipated $6.96, representing a 15.66% negative surprise. However, Netflix’s revenue met projections, coming in at $11.51 billion. This was a slight deviation from earlier guidance and Street expectations, which the company missed by 0.1%. Despite these mixed results, Evercore ISI has reiterated its Outperform rating on Netflix, maintaining a price target of $1,375.00. This decision comes in light of Netflix’s historical performance, where it has typically exceeded revenue expectations over the past two years. Additionally, the company’s stock experienced a minor increase, supported by positive developments in advertising and new product launches. These recent developments highlight the ongoing challenges and opportunities for Netflix as it navigates the evolving streaming landscape.

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