Needham has reaffirmed its positive outlook on Netflix (NFLX, Financial) following the streaming giant's first quarter performance, maintaining a Buy rating and a price target of $1,126. According to the firm's analysis, the company experienced stable subscriber retention and plan mix, unaffected by the current economic slowdown or new tariffs.
Analyst Laura Martin expressed confidence in Netflix's strategic position, citing its global reach as a key factor in maximizing both revenue and content investment. The firm's approach of bundling its services with other offerings is expected to further decrease subscriber churn.
Moreover, Needham highlighted Netflix's advertising potential as a significant driver for future revenue growth and margin expansion. The company's ability to leverage advertising could bolster its financial performance, adding another layer of revenue enhancement to its already broad portfolio.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 44 analysts, the average target price for Netflix Inc (NFLX, Financial) is $1,094.99 with a high estimate of $1,494.00 and a low estimate of $644.50. The average target implies an upside of 12.53% from the current price of $973.03. More detailed estimate data can be found on the Netflix Inc (NFLX) Forecast page.
Based on the consensus recommendation from 50 brokerage firms, Netflix Inc's (NFLX, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Netflix Inc (NFLX, Financial) in one year is $655.44, suggesting a downside of 32.64% from the current price of $973.03. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Netflix Inc (NFLX) Summary page.
