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Investing.com - KeyBanc has reiterated an Overweight rating on Netflix (NASDAQ:NFLX) with a price target of $1,390.00, falling within the current analyst range of $750-$1,600. According to InvestingPro data, the streaming giant currently trades above its Fair Value, with a market capitalization of $527.5 billion.
Since June 30, 2025, Netflix shares have declined 7% while the NASDAQ has gained 13% through October 21, according to KeyBanc analyst data. However, InvestingPro metrics show the stock has delivered an impressive 56.9% return over the past year, with a year-to-date gain of 34.6%.
The investment firm notes several positive factors supporting its bullish outlook, including improving viewership metrics, ramping advertising business, Netflix’s control over pricing, and maintained investment guardrails.
KeyBanc projects these elements will contribute to low- to mid-teens revenue growth for Netflix, alongside at least 25% annual EPS growth through 2027.
The $1,390 price target represents a 34.7x price-to-earnings multiple based on KeyBanc’s 2027 earnings estimates for the streaming company.
In other recent news, Netflix reported third-quarter 2025 revenue of $11.5 billion, marking a 17.2% year-over-year growth, aligning with expectations. Despite this revenue growth, the company faced challenges as its operating income fell below guidance due to a $619 million charge from a Brazilian tax dispute. In response to these developments, several analyst firms adjusted their outlooks on Netflix. Rosenblatt Securities raised its price target to $1,530, maintaining a Buy rating, citing strong growth. Conversely, Wedbush and Piper Sandler lowered their price targets to $1,400, with Wedbush expressing concerns about slower growth anticipated in the latter half of 2025. Canaccord Genuity kept its Buy rating with a $1,525 target, despite acknowledging limited upside for the fourth quarter. Meanwhile, Goldman Sachs reiterated a Neutral rating with a $1,300 price target, emphasizing factors such as content execution and the scaling of Netflix’s ad-supported subscription tier as key influences for future performance.
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