Netflix (NFLX) Target Price Raised on Strong Productivity Trends, Maintaining Buy Rating

Netflix's (NFLX) price target has been raised to $1,500 by Needham analyst Laura Martin, citing strong labor productivity trends. The company's revenue per full-time equivalent in fiscal 2024 exceeded that of Apple, Meta, and Alphabet, among other tech giants. The average one-year target price for Netflix is $1,224.85, with a high estimate of $1,600.00 and a low estimate of $726.11. The average brokerage recommendation is 2.0, indicating "Outperform" status.

Netflix (NFLX) has seen its price target raised to $1,500 by Needham analyst Laura Martin, who cited strong labor productivity trends as a key driver. Martin maintained a buy rating on the stock, highlighting Netflix's impressive revenue per full-time equivalent (FTE) in fiscal 2024, which exceeded that of major tech giants such as Apple, Meta, and Alphabet [1]. This productivity is considered a lead indicator of Netflix's share price performance, according to Martin.

The analyst noted that Netflix's annual labor costs are more than its $17 billion spent on content, indicating that trends in labor productivity are a crucial factor in determining the company's financial returns. In fiscal 2024, Netflix reported the highest revenue per FTE at $2.78 billion, nearly doubling the average of nine large-cap companies in Martin's coverage [1].

The positive labor productivity trends have led to an increase in free cash flow per FTE, rising from negative to positive between fiscal years 2021 and 2024. This trend is expected to continue, with Netflix driving revenue growth faster than FTE growth, aided by price increases for its subscription video on demand (SVOD) tier and ad revenue growth from its ad-driven tier [1].

The analyst's optimistic view is supported by Wall Street, with 34 out of 49 analysts covering Netflix having a strong buy or buy rating, compared to 15 with a hold rating [2]. The average one-year target price for Netflix is $1,224.85, with a high estimate of $1,600.00 and a low estimate of $726.11. The average brokerage recommendation is 2.0, indicating "Outperform" status [2].

References:
[1] https://www.cnbc.com/2025/07/11/buy-netflix-as-its-primed-to-rally-another-20percent-needham-says.html
[2] https://www.gurufocus.com/news/2971474/netflix-nflx-target-price-raised-on-strong-productivity-trends-nflx-stock-news?mobile=true