Netflix (NFLX) is back in the spotlight as several top analysts lift their price targets ahead of the company’s highly anticipated Q2 earnings report, scheduled for July 17. Growing optimism around subscriber growth, ad-tier performance, and margin expansion is making Wall Street increasingly bullish on the streaming giant’s outlook.
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Overall, analysts expect Netflix to report an EPS (earnings per share) of $7.07 for Q2, up from $4.88 in the same quarter last year. Meanwhile, analysts project Q2 revenues at $11.4 billion, according to the TipRanks Analyst Forecasts Page. Let’s look at the recent ratings on NFLX stock.
KeyBanc Sees Strong Revenue Upside for Netflix
KeyBanc’s five-star-rated analyst Justin Patterson raised his price target on NFLX stock from $1,070 to $1,390 while keeping his Buy rating.
Patterson remains upbeat on Netflix, citing strong revenue growth potential over the next few years. He expects low double-digit revenue growth driven by rising ad sales, price hikes, and new live content. While he acknowledges some near-term volatility, especially as hit series like Wednesday and Stranger Things wrap up, he believes Netflix’s ability to deliver surprise content hits and expand into live programming will keep users engaged and support long-term growth.
Overall, KeyBanc estimates Netflix could earn nearly $40 in EPS by 2027, backing its new $1,390 price target based on a 35x multiple of those projected earnings.
Needham Lifts Netflix Target on Solid Productivity Gains
Needham analyst Laura Martin raised Netflix’s price target to $1,500 from $1,126, highlighting the company’s strong employee productivity. Netflix leads nine large-cap firms (tracked by Needham) in revenue per employee with nearly double the group average, underscoring efficient workforce performance. Needham sees this as a key driver of long-term financial returns.
Additionally, it connected Netflix’s employee quality and culture to its strong financial performance, saying metrics like returns per employee help measure whether a company hires top-tier, value-generating talent.
Is Netflix a Good Long-Term Investment?
Turning to Wall Street, NFLX stock carries a Moderate Buy consensus rating. Among the 38 analysts covering the stock, 28 have issued Buy recommendations, and 10 rate it as Hold. Moreover, the average Netflix stock price target of $1,297.38 implies a 3.74% upside potential from current levels.
Year-to-date, NFLX stock gained 40%.
