Netflix stock price target reiterated at $1,525 by Canaccord on solid Q2

Investing.com - Canaccord Genuity reiterated its Buy rating and $1,525.00 price target on Netflix (NASDAQ:NFLX) following the streaming giant’s second-quarter earnings report. The streaming leader, which boasts a perfect Piotroski Score of 9 according to InvestingPro, continues to demonstrate robust financial health with $40.2 billion in trailing twelve-month revenue.

Netflix delivered Q2 results that exceeded consensus estimates, with revenue and profitability surpassing both analyst expectations and the company’s own guidance. The outperformance was attributed largely to foreign exchange tailwinds, while member growth beat internal projections despite occurring late in the quarter.

All geographic regions achieved double-digit year-over-year foreign-exchange-neutral growth. Revenue growth in the United States and Canada accelerated approximately 5 percentage points quarter-over-quarter, benefiting from a full quarter of price changes that were in line with company expectations.

Netflix’s advertising business continues to perform well, with revenue on track to roughly double year-over-year and slightly exceeding the company’s early-year projections. The company raised its third-quarter revenue and profitability guidance above consensus and increased its fiscal year 2025 outlook, citing both foreign exchange benefits and a strong content slate.

Despite the positive results and improved guidance, Netflix shares declined modestly in after-hours trading, suggesting elevated market expectations heading into the earnings report.

In other recent news, Netflix delivered strong second-quarter results, with revenue growth accelerating to 17% year-over-year on a currency-neutral basis and achieving a record-high operating margin of 34%. Evercore ISI raised its price target for Netflix to $1,375, citing strong subscriber growth and revenue acceleration as key factors. KeyBanc also reiterated its Overweight rating with a $1,390 price target, highlighting benefits from membership growth and pricing actions. Goldman Sachs increased its price target to $1,310, noting Netflix’s potential to outperform its operating margin targets and expand its ad-supported subscription tier. Wolfe Research maintained its $1,390 price target, projecting over 20% compound annual growth in earnings per share through the decade. Raymond (NSE:RYMD) James maintained a Market Perform rating, acknowledging Netflix’s solid performance across all markets and reaffirming its content budget of approximately $18 billion for 2025. Netflix continues to deploy its Ads Suite across 12 markets, with a focus on expanding capabilities and demand partnerships.

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