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Investing.com - TD Cowen has raised its price target on Netflix (NASDAQ:NFLX) to $1,440.00 from $1,325.00 while maintaining a Buy rating on the streaming giant’s stock. The stock, which has surged 88% over the past year and currently commands a market cap of $544.7 billion, is trading near its 52-week high of $1,341.15.
The firm expects Netflix to report strong second-quarter results for 2025, with revenue estimated to increase 17% year-over-year, driven by robust member growth trends. TD Cowen’s revenue and operating income estimates are 1.5% and 3.1% above consensus, respectively. According to InvestingPro, Netflix has maintained strong momentum with 15% revenue growth in the last twelve months.
TD Cowen’s recent survey indicates Netflix is gaining pricing power despite implementing a price increase in January 2025, suggesting customers remain willing to pay more for the service.
The research firm notes it will be looking for additional information on Netflix’s advertising tier performance, margin trends, and the rollout of advertising technology during the upcoming earnings report.
TD Cowen believes Netflix is well-positioned heading into what it describes as a "monster" content slate for the second half of 2025, which supports its increased price target and continued Buy rating.
In other recent news, Netflix’s financial performance and strategic moves have captured investor attention. Seaport Global Securities downgraded Netflix from Buy to Neutral, citing the company’s efforts to enhance user engagement and advertising revenue through partnerships, such as those with TF1 and potential talks with Spotify (NYSE:SPOT). Despite long-term positive adjustments to its forecasts, Seaport Global’s valuation model suggests limited upside potential, prompting the downgrade. Meanwhile, Goldman Sachs raised its price target for Netflix to $1,140, maintaining a Neutral rating, reflecting confidence in the company’s strong content slate for the latter half of 2025.
Additionally, Netflix’s Korean drama "Squid Game" Season 3 broke records with 60.1 million views in just three days, becoming one of the platform’s most-watched non-English TV shows. On the expansion front, Netflix announced plans to open its first two Netflix House locations in Philadelphia and Dallas in late 2025, with a third location in Las Vegas by 2027. These venues will offer immersive experiences based on popular Netflix shows, aiming to diversify revenue streams and strengthen market presence. This initiative builds on previous temporary experiences that have engaged millions of fans globally.
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