Evercore ISI analyst Mark Mahaney maintained his Outperform rating on May 30 while raising his price target for Netflix, Inc. (NASDAQ:NFLX) from $1,150 to $1,350. Mahaney’s upbeat outlook was supported by in-depth survey work conducted in the United States and the United Kingdom, along with a one-year improvement in the firm’s valuation methodology.
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According to the analyst, Netflix, Inc. has over $650 billion in global entertainment revenues (excluding China and Russia), which places it in a vast total addressable market. Nevertheless, Netflix’s market share is still around 10%, indicating significant room for expansion. Manahey also praised Netflix’s $7.99 ad-supported option, pointing out that it would be especially appealing during a recession.
That said, Mahaney acknowledged the difficulty for investors, pointing out that Netflix’s stock price is 38 times higher than its anticipated $31 earnings per share in 2026. The analyst’s stance on the NFLX stock is still “Consistently Constructive” in spite of this.
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