Investing.com -- Pivotal Research raised its year-end 2025 price target for Netflix (NASDAQ:NFLX) by $175 to a Street-high $1,100, reflecting increased optimism following the success of its recent live event.
The firm's analysts highlighted the Tyson/Paul fight, which was streamed by approximately 65 million households and likely reached over 150 million viewers, as a pivotal moment for the streaming giant.
While the event experienced some technical issues early in the broadcast due to overwhelming demand, Pivotal Research described it as a "very successful learning experience" and expressed confidence that such problems will be avoided in future live programming.
The firm emphasized that the fight demonstrated Netflix's potential to enhance its platform with "eventized" live programming, which could further reduce subscriber churn and bolster pricing power.
"We raised our medium/long-term subscriber and ARPU forecasts," wrote Pivotal Research, attributing the changes to Netflix's ability to deliver compelling content consistently.
The analysts also pointed to Netflix's acquisition of previously exclusive content from competitors as a factor likely to strengthen the platform's value proposition.
According to Pivotal, Netflix remains "a highly compelling, frankly relatively inexpensive, entertainment alternative for consumers," which positions it well for sustained growth in subscribers and average revenue per user (ARPU).
The increase in the target price also reflects a modest boost in Pivotal's terminal EBITDA multiple, underscoring long-term confidence in Netflix's profitability.
Netflix's latest live event potentially opens new revenue streams and growth opportunities for the streaming giant.