Netflix Inc. (NFLX)
TD Cowen has raised its 12 month price target on Netflix to $1,325, up from $1,150 citing strong momentum in the company’s global ad-supported tier. According to analyst analysis, the number of monthly active users (MAUs) in this segment has grown faster than previously anticipated, signaling increased engagement and broader adoption of the ad-tier model. This growth is occurring ahead of a highly anticipated second-quarter content lineup, which includes major new releases expected to draw significant viewership. TD Cowen believes this positions Netflix well for higher ad revenue and potentially stronger overall subscriber growth, prompting the upward revision in the stock’s target price.
Stock Forecast & Analysis
According to data compiled from 31 analysts, the average 12-month target price for Netflix Inc is $1,028.46, indicating that while the stock has rallied significantly in recent months, some analysts believe it may be slightly overextended at current levels. Despite this, the consensus rating remains a “Strong Buy”, reflecting widespread confidence in the company’s long-term growth potential, particularly in areas like advertising, content expansion, and international market penetration.
Stock Target Advisor’s proprietary analysis offers a more tempered view, with a “Slightly Bullish” rating. This assessment is derived from a combination of 7 positive signals, such as strong revenue growth, improving profitability, and technical momentum, offset by 5 negative signals, which could include valuation concerns, debt levels, or broader market risks.
At the last market close, Netflix’s stock was trading at $1,191.53, placing it above the average analyst target. The stock has shown impressive recent performance, with a +4.50% gain over the past week, a +22.46% increase over the past month, and a staggering +91.84% rise over the past year. This rally underscores investors’ confidence in Netflix’s evolving business model, including its ad-supported tier and strong content pipeline, both of which are seen as key drivers of future growth.
STA Research (StockTargetAdvisor.com) is a independent Investment Research company that specializes in stock forecasting and analysis with integrated AI, based on our platform stocktargetadvisor.com, EST 2007.
