Now Streaming: Analysts raise price targets on Netflix

“Now Streaming” is The Fly’s weekly recap of the stories surrounding the biggest content streamers.

PLAYING THIS WEEKEND: Among the most notable new streaming content this week is season three of comedy drama series “And Just Like That…,” a sequel series of “Sex and the City,” which is available to watch in HBO Max (WBD). Meanwhile, Hulu subscribers can catch the finale of drama show “The Handmaid’s Tale.” Looking to movies, Marvel film “Captain America: Brave New World,” which released in theaters earlier this year, is now available to stream on Disney+ (DIS), while Apple TV+ (AAPL) subscribers can catch adventure film “Fountain of Youth,” starring John Krasinski and Natalie Portman.

REED HASTINGS/ANTHROPIC: AI startup Anthropic (NFLX) who served as its CEO for over 25 years, has been appointed to Anthropic’s board of directors by its Long Term Benefit Trust. “Hastings brings extensive experience from founding and scaling Netflix into a global entertainment powerhouse, along with his service on the boards of Facebook (META), Microsoft (MSFT), and Bloomberg,” the company said.

COCOMELON: Disney has secured exclusive streaming rights to children’s TV series CoComelon, taking one of the most popular kids’ programs away from Netflix, Lucas Shaw of Bloomberg reported earlier this week, citing people familiar with the matter. Beginning in 2027, Disney+ will have every season of CoComelon.

NETFLIX PRICE TARGET HIKES: Several analysts increased their price targets on Netflix this week, with Citi upping its target to $1,250 from $1,020 while keeping a Neutral rating on the shares. The firm unwound the downward revisions it made to its advertising forecasts earlier this year related to tariff risks. The media group will see significant acquisitions over the next few years, the analyst tells investors in a research note. Citi finds the two consensus longs in the sector – Netflix and Spotify – “unappealing at prevailing levels.” While both companies will likely continue to enjoy healthy fundamentals, the recent multiple expansion is “a bit too robust,” the firm contends.

Meanwhile, Evercore ISI raised the firm’s price target on Netflix to $1,350 from $1,150 and keeps an Outperform rating on the shares following U.S. and UK survey work. Netflix is facing a “very large” total addressable market of $650B-plus global entertainment revenue, excluding China and Russia, of which it still accounts for less than 10% share, the analyst tells investors in a research note. Evercore believes the company has an “extremely strong and growing value proposition” and an “excellent track record of innovation.” The firm says Netflix’s business model has been inflecting up in terms of operating margins and free cash flow generation, allowing share buybacks and eventually a dividend. “In the event of a recession, Netflix’s $7.99 ad-supported offering might be the single greatest entertainment value in the land,” contends the analyst. Evercore notes the core Netflix metrics it monitors were mixed to positive in both the U.S. and the UK.

Additionally, BofA raised the firm’s price target on Netflix to $1,490 from $1,175 and maintained a Buy rating on the shares. The firm believes that Netflix will continue to outperform, supported by its world-class brand, leading global subscriber scale, position as an innovator and increased visibility in growth drivers, so it raised the multiple it applies to its estimates, the analyst tells investors. The return of Netflix’s three most watched series – Squid Game on June 27, Wednesday on August 6 and Stranger Things in the second half of the year – alongside new releases supports healthy retention and subscriber growth, the analyst added.

CITI ON WBD: Citi lowered the firm’s price target on Warner Bros. Discovery to $14 from $15 and kept a Buy rating on the shares. The firm unwound the downward revisions it made to its advertising forecasts earlier this year related to tariff risks. The media group will see significant acquisitions over the next few years, the analyst tells investors in a research note. Citi finds the two consensus longs in the sector – Netflix and Spotify – “unappealing at prevailing levels.” While both companies will likely continue to enjoy healthy fundamentals, the recent multiple expansion is “a bit too robust,” the firm contends.

PARAMOUNT DOWNGRADE: Citi analyst Jason Bazinet downgraded Paramount (PARA) to Neutral from Buy with a price target of $12, down from $13. The firm continues to expect the Skydance transaction to close in 2025, but believes the equity’s risk/reward is relatively balanced at prevailing levels. Moreover, given the large cash payment election of $7 per share, Citi expects a period of elevated volatility in the equity related to the positioning of event-driven funds post close.

STOCK PLAYS: Other publicly traded companies in the space include AMC Networks (AMCX), Fox Corp. (FOX), Comcast (CMCSA), Roku (ROKU), Fubo (FUBO), and Amazon (AMZN).