Netflix stock rating reiterated at Hold by Benchmark ahead of earnings

Published 15/07/2025, 13:22
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Investing.com - Benchmark has reiterated its Hold rating on Netflix (NASDAQ:NFLX), currently trading near its 52-week high at $1,261.95, ahead of the streaming giant’s quarterly earnings report due Thursday after market close. According to InvestingPro analysis, the stock appears to be trading above its Fair Value despite boasting a perfect Piotroski Score of 9.

The analyst firm did not provide a price target in its latest research note, indicating it is transitioning coverage of Netflix into its universe as the company "more closely aligns with a combination of our Internet/momentum coverage along with our expertise in the CTV universe." With a market capitalization of $537 billion and impressive revenue growth of 15% over the last twelve months, Netflix continues to demonstrate strong market presence.

Benchmark stated it does not have a "meaningfully differentiated call" on the upcoming earnings report, choosing to maintain its current rating while planning a "much more substantial deep dive in the near future" that will examine member growth, household penetration, and marketplace changes.

The firm published a new advertising-based video-on-demand (AVOD) model derived from its "industry knowledge of monetization rates and expectations," suggesting increased focus on Netflix’s advertising business.

Despite not changing its rating, Benchmark expressed long-term optimism about Netflix, describing it as "a key component of any subscriber must-have list" and noting that while shares are "not particularly cheap on any metric," they are also not "overly expensive given Netflix’s dominant and growing position." The stock has delivered a remarkable 92% return over the past year, reflecting strong investor confidence. For deeper insights into Netflix’s valuation and growth metrics, access the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Netflix is preparing for its second-quarter 2025 earnings report, with BofA Securities reiterating its Buy rating and forecasting revenue of $11.04 billion and operating income of $3.68 billion, aligning closely with the company’s guidance. BofA also projects earnings per share of $7.05, slightly above Netflix’s guidance of $7.03, citing potential foreign exchange benefits. Meanwhile, Wedbush has maintained its Outperform rating and $1,400 price target, noting confidence in Netflix’s ability to enhance ad tier revenue through improved live events and advertising strategies. Piper Sandler raised its price target to $1,400, emphasizing strong commentary and increased revenue projections for late 2025. Needham also boosted its price target to $1,500, highlighting Netflix’s high revenue per employee as a significant factor. KeyBanc increased its target to $1,390, driven by expectations of low double-digit revenue growth through live events and advertising. These recent developments reflect a positive outlook from multiple investment firms on Netflix’s growth prospects and strategic initiatives.

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