Analysts have adopted a more optimistic outlook on Netflix following its third-quarter earnings surpassing expectations. On Friday, Netflix shares rose over 6% in premarket trading after the company reported earnings of $5.40 per share and a revenue of $9.83 billion, exceeding Wall Street’s expectations of $5.12 per share and $9.77 billion in revenue, according to data from LSEG. Additionally, Netflix’s subscriber growth outperformed projections, with the company adding 5.1 million subscribers compared to the expected 4.5 million, bringing the total subscriber count to 282.7 million.
JPMorgan analyst Doug Anmuth maintains a positive view of Netflix, citing the company’s global scale and diverse content as key drivers in making it a preferred choice for streaming TV, films, and other long-form content. Anmuth reiterated his overweight rating on the stock and increased his price target by $100 to $850, suggesting a potential upside of over 23% from the previous close. Similarly, Morgan Stanley analyst Benjamin Swinburne also reiterated an overweight rating, raising his price target by $10 to $830, indicating over 20% upside potential. Swinburne emphasized the success of Netflix’s results and sees further growth opportunities, noting Netflix’s poised position as a leading global streaming service heading into 2025.
Other firms have also weighed in on Netflix’s performance and prospects. Pivotal Research maintained its buy rating on the stock, raising its price target to $925. The firm highlighted Netflix’s significant scale and ability to drive subscriber results and free cash flow, contrasting with the challenges faced by its streaming competitors.
Bernstein reiterated a market perform rating for Netflix, increasing the price target to $780 from $625. While acknowledging disappointing user growth in Latin America, the firm noted more encouraging future commentary, highlighting a stronger content slate, revenue growth guidance for 2025, and expanded operating margins.
Bank of America stuck to its buy rating, elevating its price target to $800 from $740. The bank lauded Netflix’s strategic positioning within media and its multiple growth drivers, including an expanding ad business.
UBS also reaffirmed its buy rating, boosting the price target to $825 from $750. UBS sees Netflix benefitting from rationalized direct-to-consumer competition and ongoing margin expansion.
Meanwhile, Goldman Sachs maintained a neutral rating with a $750 price target, acknowledging debates around price increases and operating margins while highlighting operational tailwinds reflected in the company’s revised forward estimates.
