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Investing.com - Wedbush maintained its Outperform rating and $1,400 price target on Netflix (NASDAQ:NFLX) stock on Monday. The streaming giant, currently trading at $1,245.11 with a market capitalization of $529.88 billion, has delivered an impressive 92% return over the past year. According to InvestingPro analysis, the stock appears slightly overvalued at current levels.
The research firm expressed confidence in Netflix’s ability to accelerate ad tier revenue contribution over the next several years through multiple strategies, including adding and improving live events and enhancing advertising solutions and targeting capabilities.
Wedbush noted that while massive subscriber growth was the primary driver in 2024, it expects price increases to drive revenue growth in 2025, followed by ad tier revenue becoming a significant growth driver in 2026.
The firm highlighted Netflix’s expanding partnerships and broadening content strategy as additional factors supporting its positive outlook on the streaming giant.
Wedbush also pointed out that as Netflix continues to expand, its contribution margin could "massively exceed" the firm’s estimates, potentially driving outsized free cash flow for the company.
In other recent news, Netflix has seen a series of analyst upgrades, reflecting optimism about its future performance. Piper Sandler raised its price target for Netflix to $1,400, citing strong commentary and increased revenue projections beginning in the third quarter of 2025. Needham also raised its price target to $1,500, highlighting Netflix’s strong labor productivity trends and noting its impressive revenue per full-time employee. KeyBanc increased its target to $1,390, pointing to potential for low double-digit revenue growth driven by live events, price increases, and advertising revenue expansion.
Citi maintained a Neutral rating with a $1,250 price target ahead of Netflix’s Q2 2025 earnings report, expecting revenue and operating income to slightly exceed consensus estimates. Barclays (LON:BARC) increased its target to $1,100, emphasizing Netflix’s upcoming content slate, including new seasons of "Stranger Things" and "Wednesday." Despite the upgrades, some analysts expressed caution, noting concerns about advertising revenue and valuation. These developments underscore the varied perspectives on Netflix’s growth trajectory amid its evolving content and business strategies.
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