Netflix stock price target reiterated at $1,390 by Wolfe Research

Published 18/07/2025, 09:14
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Investing.com - Wolfe Research has reiterated its Outperform rating and $1,390.00 price target on Netflix (NASDAQ:NFLX), citing the streaming giant’s expanding growth strategies and strong cash flow position. The stock, currently trading at $1,274.17, has delivered an impressive 98.15% return over the past year. According to InvestingPro data, Netflix maintains a perfect Piotroski Score of 9, indicating exceptional financial strength.

The research firm believes Netflix is well-positioned to extend its leadership in long-form video streaming, which continues to gain wallet share from the pay-TV sector—a $130 billion revenue category in the United States alone. With revenue growth of 15% and a market capitalization of $542.25 billion, Netflix has established itself as a dominant force in the entertainment industry.

Wolfe Research expects Netflix to deliver over 20% compound annual growth in earnings per share through the remainder of the decade, supported by durable growth from sustainable subscription revenues, pricing power, and advertising. This optimistic outlook is reinforced by InvestingPro analysis, which reveals that 11 analysts have revised their earnings estimates upward for the upcoming period. Get access to 20+ additional ProTips and comprehensive financial metrics with InvestingPro’s detailed research report.

The $1,390 price target reflects a 36x multiple on Netflix’s estimated 2027 earnings per share of $40.41, discounted back to a 12-month target price.

The valuation is supported by comparable multiples for high-growth consumer brand and technology businesses, according to Wolfe Research’s analysis.

In other recent news, Netflix reported impressive financial results for the second quarter of 2025, with earnings per share (EPS) of $7.19 and revenue of $11.08 billion, both exceeding analysts’ expectations. The company has adjusted its full-year revenue guidance upward to a range of $44.8–$45.2 billion. Oppenheimer reiterated its Outperform rating on Netflix, noting increased profitability and subscriber growth, while raising its revenue guidance by 2% for fiscal year 2025. Guggenheim also raised its price target for Netflix to $1,400, maintaining a Buy rating, and highlighted the company’s strong global position and content strategy. Additionally, Netflix has been expanding its advertising capabilities, with its ad revenue projected to double year-over-year. Raymond (NSE:RYMD) James maintained a Market Perform rating, considering the stock fairly valued. Netflix continues to focus on diversifying its content and enhancing its advertising platform, reaffirming a content budget of approximately $18 billion for fiscal year 2025. The company has also completed the rollout of its Netflix Ads Suite across all advertising markets.

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