Jefferies Maintains Buy Rating on Netflix (NFLX) Stock, Lifts PT

On June 3, Jefferies analysts raised the price target on Netflix, Inc. (NASDAQ:NFLX)’s stock to $1,400 from $1,200, while maintaining a “Buy” rating. The analysts cited the company’s recent US price increases and a healthy lineup of content releases in the second half of the year as factors positioning it to meet the high end of its FY 2025 revenue guidance.

Jefferies Upgrades Netflix (NFLX) Stock, Lifts PT

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For FY 2025, Netflix, Inc. (NASDAQ:NFLX) expects revenue in the range of $43.5 billion – $44.5 billion and an operating margin of 29%. Over the upcoming 5 years, Netflix, Inc. (NASDAQ:NFLX) is expected to sustain healthy growth in EPS and FCF. Notably, the analysts believe that high-margin ad revenue, expansion into live sports, and continued price hikes might act as critical growth drivers.

The positive outlook demonstrates confidence in Netflix, Inc. (NASDAQ:NFLX)’s strategic initiatives and content offerings, while it continues to navigate competitive pressures in the broader streaming industry. The recent pricing adjustments it made in large markets (which include the US, UK, and Argentina) have performed as per the expectations.

One key focus in 2025 is improving the capabilities for advertisers. Netflix, Inc. (NASDAQ:NFLX)’s ads plan enables it to provide lower price points for consumers while building an additional revenue and profit stream for the business. The company’s ad tech platform forms a strong base for its long-term ads strategy.

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