Netflix stock price target raised to $1,310 from $1,140 by Goldman Sachs

Published 18/07/2025, 09:14
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Investing.com - Goldman Sachs raised its price target on Netflix (NASDAQ:NFLX) to $1,310.00 from $1,140.00 on Friday, while maintaining a Neutral rating on the streaming giant’s stock. The company’s shares, which have surged 98% over the past year, are currently trading near their 52-week high of $1,341.15. According to InvestingPro analysis, Netflix appears to be trading above its Fair Value.

The investment bank cited several key variables that could impact Netflix’s stock performance for the remainder of 2025, including the execution of strong content across television and movies, potential outperformance of second-half operating margin targets, and continued scaling of the ad-supported subscription tier. The company’s strong financial health is evidenced by its perfect Piotroski Score of 9 and impressive gross profit margin of 47%.

Goldman Sachs noted that Netflix management continues to emphasize revenue opportunities ahead as the company capitalizes on its relatively small share of total media consumption, particularly in international markets, with a content pipeline expected to stimulate membership growth, pricing power, and ad-tier scaling.

Regarding second-half 2025 operating margins, Netflix management reiterated that key content and marketing investments are expected in the coming months, according to the investment bank’s research note.

Goldman Sachs analysts expressed increased confidence in Netflix’s potential to outperform its own guidance, leading them to project slightly higher margins than management’s framework suggests. With 11 analysts recently revising earnings estimates upward, InvestingPro offers 20+ additional exclusive insights and detailed financial analysis in its comprehensive Pro Research Report, helping investors make informed decisions about this entertainment industry leader.

In other recent news, Netflix reported stronger-than-expected earnings for the second quarter of 2025, with earnings per share (EPS) of $7.19 and revenue reaching $11.08 billion, both surpassing forecasts. The company has also increased its full-year revenue guidance to between $44.8 billion and $45.2 billion. Wolfe Research reiterated its Outperform rating on Netflix, citing the company’s expanding growth strategies and strong cash flow position. Similarly, Oppenheimer maintained its Outperform rating, highlighting Netflix’s leadership position and increasing profitability, while projecting a 2% increase in fiscal year 2025 revenue guidance.

Guggenheim raised its price target for Netflix to $1,400, reflecting confidence in the company’s sustained value creation and growth potential. Meanwhile, Raymond (NSE:RYMD) James maintained a Market Perform rating, noting that Netflix’s second-quarter earnings slightly exceeded expectations. Netflix has also reaffirmed its content budget of approximately $18 billion for the fiscal year 2025. The company continues to expand its global content and advertising capabilities, with the Netflix Ads Suite now deployed across all 12 advertising markets. These developments indicate Netflix’s ongoing efforts to consolidate its market share in the streaming industry.

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