Netflix (NFLX, Financials) got a fresh vote of confidence from Evercore ISI, which raised its price target to $1,350 from $1,150 while keeping an Outperform rating. Shares are trading around $1,185—just shy of their 52-week high of $1,215.91 and about 15% below the new target.
The call is backed by updated U.S. and U.K. survey work and a forward-looking valuation model. Netflix has climbed 83% over the past year, with a market cap north of $504 billion. Shares now trade at 38 times projected 2026 EPS of $31, which raises some valuation flags—but not enough to dent Evercore's bullish stance.
Netflix still holds less than 10% of a $650 billion global entertainment market (excluding China and Russia), leaving plenty of room to grow. Rising margins and free cash flow could pave the way for buybacks or even a dividend.
Analysts also highlighted Netflix's $7.99 ad-supported plan as a smart option in a tougher economy. The company is rolling out its own ad tech by June 2025 and expects to double ad revenue next year.
TD Cowen bumped its target to $1,325, citing growth in ad-tier users. JPMorgan, however, lowered its rating to Neutral, even as it raised the target to $1,220. Loop Capital stayed cautious, holding its $1,000 target and noting rich valuation despite strong content and ad tools.
On the content side, Netflix is bringing Sesame Street to its lineup, with both classic and new episodes arriving later this year.