Netflix stock price target raised to $1,500 from $1,126 by Needham

Investing.com - Needham raised its price target on Netflix (NASDAQ:NFLX) to $1,500.00 from $1,126.00 on Friday, while maintaining a Buy rating on the streaming giant’s shares. According to InvestingPro data, Netflix has delivered an impressive 91.59% return over the past year, with the stock currently trading near its 52-week high of $1,341.15.

The firm cited Netflix’s strong labor productivity trends as the primary catalyst for the increased target, noting that the company reported the highest revenue per full-time equivalent (FTE) employee among nine large-cap companies covered by Needham.

According to Needham’s analysis, Netflix generated $2.78 billion in revenue per FTE in fiscal year 2024, significantly outperforming major tech companies including Apple (NASDAQ:AAPL), Meta (NASDAQ:META), and Google (NASDAQ:GOOGL).

The research firm emphasized that Netflix’s revenue per employee was nearly twice the average of the nine large-cap companies in its coverage universe, demonstrating superior employee productivity.

Needham linked employee quality and corporate culture to financial returns, arguing that absolute returns, trends in returns, and relative returns per employee are key quantitative metrics for determining whether a company employs high-quality, value-creating employees. With Netflix’s earnings report due in 6 days, investors can access comprehensive analysis and 18 additional key insights through InvestingPro’s detailed research reports.

In other recent news, Netflix has been the focus of several analyst updates and financial projections. KeyBanc has increased its price target for Netflix to $1,390, maintaining an Overweight rating, citing potential for revenue growth driven by live events, price increases, and advertising expansion. Meanwhile, Citi has reiterated a Neutral rating with a $1,250 price target, forecasting slightly above consensus revenue and operating income for Netflix’s upcoming Q2 2025 earnings. Barclays (LON:BARC) has also raised its price target to $1,100, highlighting Netflix’s upcoming content releases, including new seasons of "Stranger Things" and "Wednesday," and NFL content in 2025. TD Cowen has set a higher price target of $1,440, expecting strong Q2 results with a 17% year-over-year revenue increase, supported by member growth. Conversely, Seaport Global Securities has downgraded Netflix to Neutral, despite projecting significant long-term advertising revenue growth and global price increases. These recent developments reflect varied analyst perspectives on Netflix’s growth strategies and market position.

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