Netflix stock price target raised to $1,375 by Evercore ISI on strong Q2

Investing.com - Evercore ISI has raised its price target on Netflix (NASDAQ:NFLX) to $1,375 from $1,350 while maintaining an Outperform rating following the streaming giant’s second-quarter earnings results. The stock, currently trading at $1,274.17 and near its 52-week high, has delivered an impressive 98% return over the past year. According to InvestingPro analysis, Netflix currently appears overvalued relative to its Fair Value.

The firm cited Netflix’s strong subscriber growth, accelerating revenue, and record-high operating margins as key factors behind the price target increase. Netflix delivered better-than-expected Q2 results, with revenue growth accelerating to 17% year-over-year on a currency-neutral basis. The company’s robust financial health is reflected in its perfect Piotroski Score of 9, as reported by InvestingPro, which offers 20+ additional insights about Netflix’s performance.

Netflix achieved a record-high operating margin of 34% in the quarter, which Evercore ISI attributed largely to content cost leverage. The company’s full-year operating margin guidance of 30% may be conservative, according to the research firm.

Evercore ISI highlighted stable or accelerating revenue growth trends across all regions despite tougher comparisons, with North American growth accelerating back to 15% as particularly significant. The firm also noted Netflix’s commitment to operating margin expansion in both the third and fourth quarters.

New engagement disclosures revealed 1% growth in total viewing hours during the first half of the year, with non-English content accounting for one-third of all viewing and no single title representing more than 1% of total viewing hours.

In other recent news, Netflix reported second-quarter 2025 earnings that slightly exceeded expectations, with solid performance across all markets and revenue growth surpassing 15% in each region, excluding foreign exchange impacts. The company reaffirmed its $18 billion content budget for fiscal year 2025 and noted that member additions surpassed internal forecasts, leading to an improved outlook for the second half of the year. Oppenheimer reiterated an Outperform rating on Netflix, citing accelerated subscriber growth and increased profitability, with a raised price target of $1,425.00. The firm also noted that Netflix’s advertising revenue for fiscal year 2025 is projected to double year-over-year. Wolfe Research maintained its Outperform rating and $1,390.00 price target, highlighting Netflix’s strong cash flow position and expanding growth strategies. Goldman Sachs raised its price target to $1,310.00 from $1,140.00, maintaining a Neutral rating while expressing confidence in Netflix’s potential to outperform its guidance. KeyBanc reiterated an Overweight rating with a $1,390.00 price target, acknowledging Netflix’s quarterly results in line with expectations, driven by membership growth and favorable foreign exchange rates. Raymond (NSE:RYMD) James maintained a Market Perform rating, noting Netflix’s steady performance and positive commentary on its advertising tier.

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