On Wednesday, TD Cowen reaffirmed its confidence in Netflix (NASDAQ:NFLX) stock, raising the price target to $1,150 from the previous $1,000 while maintaining a Buy rating. Currently trading at $869.68, Netflix has delivered an impressive 79% return over the past year, according to InvestingPro data. The adjustment reflects a positive outlook on the company's revenue and subscriber growth.
TD Cowen anticipates Netflix will see a revenue increase in the first quarter of 2025 to $10.5 billion, a slight rise from the prior estimate of $10.4 billion. This expectation is based on a forecast of 5.9 million global paid net adds. The company has demonstrated strong momentum, with revenue growing 14.8% in the last twelve months to $37.6 billion.
For the full year of 2025, the firm now estimates Netflix's revenue to reach $45.0 billion, up from the previous forecast of $43.4 billion. The revised projection is driven by an updated management forecast and an anticipated increase in global paid net member additions to 22.4 million, up from 22.2 million.
Looking further ahead, TD Cowen has raised its revenue forecast for the years 2026 through 2033 by an average of 3.5% annually. This optimistic long-term view is supported by adjustments to the firm's model, including increased near- and long-term operating income estimates due to the better revenue outlook and improving margins.
The analyst from TD Cowen highlighted Netflix's significant long-term opportunities, citing the company's multi-year lead in developing a global streaming platform. The platform's strength is bolstered by a robust portfolio of owned Originals and local language content at scale. The revised Discounted Cash Flow (DCF)-based price target of $1,150 per share reflects the firm's confidence in Netflix's continued growth and market leadership.
In other recent news, Netflix has been making waves with its strong fourth-quarter performance, leading to several upgrades and raised price targets by analysts. Canaccord Genuity upgraded Netflix from Hold to Buy, setting a new price target of $1,150, following impressive revenue growth and paid memberships. In addition, Netflix's content lineup for 2025 and the expansion of its advertising tier were highlighted as key growth drivers.
Netflix also announced price increases for most subscription plans in select countries, a move included in its fiscal year 2025 guidance. Despite a slightly lower Q1 outlook for revenue and profitability, the company's management revised its full-year 2025 guidance upwards, reflecting the benefits of a strong Q4 performance.
Several other firms, including Oppenheimer, KeyBanc, Piper Sandler, and Raymond (NSE:RYMD) James, have also expressed positive views on Netflix. They have raised their price targets, citing factors such as strong margin dynamics, revenue growth, and the company's ability to navigate the competitive streaming landscape. These are all recent developments that highlight the ongoing momentum of Netflix in the entertainment industry.
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