Netflix gets price target hike from Jefferies on favorable catalyst path
Published: 15:15 03 Jun 2025 EDT
Netflix Inc (NASDAQ:NFLX, ETR:NFC) has earned a price target boost from Jefferies analysts, who have raised their price target on the streaming giant to $1,400 from $1,200, implying upside of 16% from Netflix’s share price of about $1,208 at the time of writing.
The analysts maintained their ‘Buy’ rating, citing a strong catalyst path over the coming quarters, bolstered by subscription pricing power, a blockbuster second-half content slate, and the early-stage potential of Netflix’s advertising business.
“We continue to see a favorable catalyst path for Netflix over the short, medium, and long-term,” the analysts wrote.
“Firstly, the combination of US price increases and one of the best second half release slates in recent memory position the company well to achieve at least the high end of the 2025 revenue guide.”
Netflix’s shares have surged 84% over the past year, buoyed by a record 41 million net subscriber additions in 2024. Jefferies believes the next phase of growth will be driven by US price hikes.
“Churn from recent price increases has been limited suggesting long-term pricing power is intact,” they wrote.
Several major franchises are returning in the second half of 2025, including Squid Game, Stranger Things and Wednesday, which are expected to lift engagement and revenue.
Netflix’s entrance into live sports and entertainment are seen as strategic steps to expand audience reach and create monetization opportunities.
Further, the analysts estimate Netflix’s ad business could grow from approximately $2 billion in 2025 to more than $10 billion long-term.
They expect Netflix can sustain 20%+ annual free cash flow (FCF) growth over the next five years, with FCF reaching $18 billion+ up from $6.9 billion today.
“In our view, Netflix's improved return on invested capital and sustainable 20%+ FCF growth justifies a premium multiple,” the analysts wrote.
Shares of Netflix traded hands at $1,220 on Tuesday afternoon, up almost 37% in the year to date.
