Netflix: Wedbush Reiterates Outperform, Raises PT to $1400 from $1400

Netflix: Wedbush Reiterates Outperform, Raises PT to $1400 from $1400

On Monday, Wedbush Securities reiterated its Outperform rating on Netflix (NASDAQ:NFLX) stock, maintaining a $1,400 price target. The streaming giant, currently trading at $1,245.11 with a market capitalization of $529.88 billion, has delivered an impressive 92% return over the past year [1].

Wedbush expressed confidence in Netflix's ability to accelerate ad tier revenue contribution over the next several years through multiple strategies, including adding and improving live events and enhancing advertising solutions and targeting capabilities. The research firm noted that while massive subscriber growth was the primary driver in 2024, it expects price increases to drive revenue growth in 2025, followed by ad tier revenue becoming a significant growth driver in 2026 [1].

The firm highlighted Netflix’s expanding partnerships and broadening content strategy as additional factors supporting its positive outlook on the streaming giant. Wedbush also pointed out that as Netflix continues to expand, its contribution margin could "massively exceed" the firm’s estimates, potentially driving outsized free cash flow for the company [1].

Netflix has seen a series of analyst upgrades, reflecting optimism about its future performance. Piper Sandler raised its price target for Netflix to $1,400, citing strong commentary and increased revenue projections beginning in the third quarter of 2025. Needham also raised its price target to $1,500, highlighting Netflix’s strong labor productivity trends and noting its impressive revenue per full-time employee. KeyBanc increased its target to $1,390, pointing to potential for low double-digit revenue growth driven by live events, price increases, and advertising revenue expansion [1].

Citi maintained a Neutral rating with a $1,250 price target ahead of Netflix’s Q2 2025 earnings report, expecting revenue and operating income to slightly exceed consensus estimates. Barclays increased its target to $1,100, emphasizing Netflix’s upcoming content slate, including new seasons of "Stranger Things" and "Wednesday." Despite the upgrades, some analysts expressed caution, noting concerns about advertising revenue and valuation [1].

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References:
[1] https://www.investing.com/news/analyst-ratings/wedbush-reiterates-outperform-rating-on-netflix-stock-maintains-1400-price-target-93CH-4133852