The stock of streaming giant Netflix (NFLX) could rise 20% or more from current levels, says a top Wall Street analyst.
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In a research note, Brian Pitz, a five-star rated analyst at BMO Capital Markets (BMO), maintained a Buy rating on NFLX stock and raised his price target on the shares to $1,000 from $825. The new price target is 21% higher than where Netflix’s stock closed on January 14.
The analyst’s bull case is largely based on the success of company’s live-sports programming. Netflix broadcast the Jake Paul-Mike Tyson boxing match last autumn and two NFL football games on Christmas Day. Now, the company has begun streaming WWE’s Monday Night Raw wrestling show. Netflix has also secured the exclusive U.S. rights to the 2027 and 2031 FIFA Women’s World Cup soccer tournaments.
“Successful live events in the fourth quarter of 2024, WWE beginning in the first quarter of 2025, Women’s World Cup Soccer in 2027, and upside from yet-to-be-announced titles,” wrote Pitz in his evaluation of NFLX stock.
Growing the Subscriber Base
Pitz expects live sports to draw in new subscribers to Netflix, including for the company’s lowest tier advertising-supported plans, which are priced at $6.99 per month. To that end, he raised his year-end ad-supported subscriber estimate to 90 million from 60 million, a 50% increase from current levels.
Pitz also sees a virtuous cycle forming for Netflix, where increased subscribers draw in more advertising dollars at the streaming service. He expects about $3 billion of global advertising budgets to shift to Netflix by the end of this year, “with more meaningful contributions in 2026 and beyond.”
The bullish note from Pitz comes as Netflix stock declines, having fallen 11% since December 24. However, NFLX stock is still up 75% over the past 12 months.
Is NFLX Stock a Buy?
The stock of Netflix has a consensus Moderate Buy rating among 34 Wall Street analysts. That rating is based on 22 Buy, 10 Hold, and two Sell recommendations assigned in the last three months. The average NFLX price target of $930.37 implies 10.46% upside from current levels.
