Netflix Price Target Raised to $1,425 by BMO Capital, Analyst Reiterates "Outperform" Rating

BMO Capital analyst Brian Pitz has reiterated an "Outperform" rating for Netflix (NFLX) and raised its price target from $1,200 to $1,425, an 18.75% increase. The decision reflects continued confidence in Netflix's market performance. The average one-year price target for NFLX is $1,244.47, with a high estimate of $1,600 and a low of $726.11. The average target implies a 1.01% downside from the current price of $1,257.15.

BMO Capital analyst Brian Pitz has reiterated an "Outperform" rating for Netflix (NFLX) and raised its price target from $1,200 to $1,425, an 18.75% increase. The decision reflects continued confidence in Netflix's market performance and the potential for significant growth. The average one-year price target for NFLX is $1,244.47, with a high estimate of $1,600 and a low of $726.11. The average target implies a 1.01% downside from the current price of $1,257.15 [2].

BMO Capital cited record-breaking viewership data for "Squid Game 3" and favorable foreign exchange conditions as factors driving its increased revenue and operating income estimates for Q2 2025 and the second half of the year. The firm also highlighted emerging artificial intelligence (AI) tailwinds that are expected to deliver multi-year benefits to Netflix, given the company’s "hundreds of billions" of user interactions globally [2].

The research firm believes AI tools will complement Netflix’s current CGI and visual effects capabilities, enhancing production workflows, expanding creator possibilities, and driving user engagement. Netflix currently trades above its forward averages, according to BMO Capital, which raised its estimates alongside the new price target [2].

In other recent news, Netflix is preparing to release its quarterly earnings report. Analysts are expecting Netflix’s revenue to grow 15.8% year on year to $11.07 billion, with adjusted earnings expected to come in at $7.09 per share. The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings [3].

Despite differing perspectives from various analysts, these developments indicate a diverse range of expectations for Netflix’s financial performance. BofA Securities has reiterated a Buy rating, forecasting Q2 2025 revenue of $11.04 billion and operating income of $3.68 billion, aligning with Netflix’s guidance. Wedbush maintained an Outperform rating, highlighting Netflix’s potential for revenue growth through price increases and ad tier contributions. Piper Sandler raised Netflix’s price target to $1,400, citing strong commentary and increased revenue projections for the third quarter of 2025. Needham also raised its price target to $1,500, emphasizing Netflix’s strong labor productivity, noting it leads in revenue per full-time employee among major tech firms. Benchmark, on the other hand, reiterated a Hold rating, focusing on Netflix’s advertising business and long-term prospects [2].

References:
[1] https://www.tradingview.com/news/gurufocus:44a753110094b:0-intuit-intu-price-target-raised-to-870-at-bmo-capital-on-ai-and-tax-tailwinds/
[2] https://www.investing.com/news/analyst-ratings/bmo-capital-raises-netflix-stock-price-target-to-1425-on-ai-tailwinds-93CH-4136062
[3] https://www.tradingview.com/news/stockstory:94510ebcc094b:0-netflix-nflx-to-report-earnings-tomorrow-here-is-what-to-expect/