Netflix stock rating reiterated at Outperform by Oppenheimer on growth

Investing.com - Oppenheimer has reiterated an Outperform rating on Netflix (NASDAQ:NFLX) with a price target of $1,425.00, citing the company’s leadership position and increasing profitability. The streaming giant, currently trading near its 52-week high with a market capitalization of $542 billion, has achieved a perfect Piotroski Score of 9 according to InvestingPro data, indicating strong financial health.

The research firm noted that Netflix subscribers accelerated late in the second quarter, exceeding company forecasts, a trend expected to continue due to a stronger content slate in the second half of the year.

Oppenheimer highlighted that Netflix’s Upfront advertising sales were in line with or better than expected given its monthly active user scale and new advertising tools, with fiscal year 2025 ad revenue projected to double year-over-year.

The firm increased its fiscal year 2025 revenue guidance by 2% based on foreign exchange factors, subscriber growth, and improved advertising monetization, while raising its operating income forecast by 6%.

Netflix repurchased $1.6 billion of stock compared to $3.5 billion in the first quarter and retired $1 billion of USD/EUR senior notes, with Oppenheimer suggesting that fiscal year 2026 margin projections are likely conservative.

In other recent news, Netflix reported better-than-expected earnings for the second quarter of 2025, with earnings per share (EPS) of $7.19, surpassing the forecast of $7.07, and revenue reaching $11.08 billion, exceeding the expected $11.04 billion. Following this, the company raised its full-year revenue guidance to a range of $44.8–$45.2 billion, up from the previous $43.5–$44.5 billion. Guggenheim raised its price target for Netflix from $1,150 to $1,400, maintaining a Buy rating due to the company’s strong global streaming position and promising content slate for the latter half of 2025. The firm cited Netflix’s expanded live content partnerships and increased advertiser demand as key drivers of long-term growth potential. Additionally, Netflix continues to focus on diversifying its content and enhancing its advertising platform, contributing to its robust performance. The company is also expanding its global content and advertising capabilities, which include ventures into live events and sports. Netflix’s strategic initiatives and positive earnings results have bolstered investor confidence, as reflected in the recent stock upgrade and revenue outlook.

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