Netflix stock defended at Oppenheimer amid recent underperformance

Published 03/10/2025, 17:46
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Investing.com -- Oppenheimer analysts have reaffirmed their positive stance on Netflix, maintaining an Outperform rating and a $1,425 price target despite the stock’s recent weakness.

“Given strong 3Q engagement data and stock underperformance, we are reiterating our $1,425 target and Outperform rating ahead of earnings,” Oppenheimer wrote.

The bank highlighted Netflix’s momentum in user activity as a key factor underpinning its call. 

“3Q engagement has been strong, with hours viewed +20% y/y and should only improve long-term as NFLX pushes more into live events, expanding its competitive advantage,” the analysts said.

The firm believes that potential sports rights deals could further strengthen that position. 

Media reports suggest Netflix is close to signing an exclusive deal for the New York Yankees’ Opening Day game. “We could see an NFL announcement with NFL reportedly renegotiating its media rights deals ahead of schedule,” Oppenheimer added.

The analysts also downplayed competitive risks from broader media consolidation. “We believe rumored WBD/PSKY deal is immaterial to NFLX based on our NFLX viewership data analysis,” they said.

Another upcoming catalyst is expected to be the company’s 2026 guidance. “NFLX should also provide 2026 financial guidance for the first time, which we see as another catalyst,” the note said.

Oppenheimer’s price target is based on a 20-times multiple of its 2030 earnings per share forecast.

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