Netflix stock rating reiterated by Bernstein as K-Pop Demon Hunters drives engagement

Investing.com - Bernstein SocGen Group has reiterated an Outperform rating and $1,390.00 price target on Netflix (NASDAQ:NFLX), citing a rebound in engagement during the third quarter of 2025. The streaming giant, currently trading at $1,203.29, has delivered an impressive 71.4% return over the past year, according to InvestingPro data.

The firm reports that Netflix’s global engagement rose modestly quarter-over-quarter, reversing a dip experienced in the second quarter. This rebound was driven almost entirely by "K-Pop Demon Hunters," which added approximately 500 million viewing hours, with another 400 million hours expected in the fourth quarter.

Netflix’s subscriber growth remains healthy with an estimated 7 million net additions in the third quarter, according to Bernstein. Growth was particularly strong in international regions, primarily in Latin America, with non-English content continuing to drive expansion and younger audience segments leading growth.

The streaming giant’s second half of 2025 engagement is projected to exceed first-half figures, supported by a strong slate of returning TV series in the fourth quarter. Major franchise renewals are expected to add significantly more incremental viewing hours on top of current engagement levels.

Bernstein notes that returning TV series seasons are contributing more to subscriber retention and engagement, making Netflix less reliant on movies. However, the firm identifies potential risks including strong competitor content slates, major sports seasons in the fourth quarter, and possible engagement decline in later seasons of shows. With analyst targets ranging from $750 to $1,600, investors seeking deeper insights into Netflix’s valuation and growth prospects can access comprehensive analysis through InvestingPro’s detailed research reports.

In other recent news, Netflix is gearing up for its third-quarter earnings report, with KeyBanc maintaining an Overweight rating and setting a price target of $1,390. Jefferies also kept its Buy rating, with a price target of $1,500, expressing confidence in Netflix’s potential for over 17% revenue growth year-over-year in Q3. Meanwhile, Morgan Stanley removed Netflix from its Top Pick list, although it maintained an Overweight rating and a $1,500 price target, noting the stock’s prolonged presence on the list as the reason for its removal. Seaport Global Securities upgraded Netflix’s stock rating from Neutral to Buy, setting a target of $1,385, citing potential growth from advertising revenue. Additionally, Netflix announced a partnership with Spotify to introduce video podcasts on its platform, beginning in early 2026. This collaboration will initially roll out in the United States, featuring popular shows like The Bill Simmons Podcast and The Rewatchables. These developments highlight Netflix’s strategic moves and analyst expectations ahead of its earnings release.

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