Streaming giant Netflix (NFLX) has won several bullish reviews, price target hikes, and rating upgrades following its stellar fourth-quarter earnings. On Friday, Bernstein analyst Laurent Yoon upgraded NFLX stock to Buy from Hold and increased the price target to $1200 from $975. Yoon’s rating change followed upgrades by analysts at Wolfe Research, Arete Research, Canaccord Genuity, Barclays, Rosenblatt Securities, and Benchmark Co. NFLX shares have rallied more than 79% over the past year and several analysts see continued upside potential in the stock.
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Bernstein Turns Bullish on NFLX Stock after Q4 Earnings
Last week, Netflix reported nearly 19 million subscriber additions for Q4 2024, with the global paid memberships crossing the 300 million mark by the end of the quarter. NFLX shares rallied as the company exceeded Wall Street’s expectations with a 16% growth in the Q4 2024 revenue and raised its full-year top-line guidance.
Yoon said that a year back, it would have been difficult to imagine a $1,000 price target for Netflix, which was trading below $500. He added that Netflix has now proved itself worthy of such a price target by achieving double-digit subscriber growth (adding more than 30 million subscribers in 2024), high single-digit annual revenue per member (ARM) growth (forex neutral), and margin expansion that is way above the 24% guidance for the year.
He contended that some may find Netflix stock expensive only if they estimate an earnings per share (EPS) of $30 for 2026. In this context, he pointed out Netflix’s outperformance, given that the consensus EPS in January 2024 was about $16 compared to the $19.83 that the company finally reported. Despite the uncertainty about the factors that might drive NFLX’s long-term growth, like sports, advertising, and gaming, the analyst said that there are enough positives currently that give him confidence for a “much-delayed upgrade.”
Is NFLX Stock a Good Buy?
Overall, Netflix stock scores a Moderate Buy consensus rating based on 28 Buys, 10 Holds, and one Sell rating. It is worth noting that the only Sell rating followed the Q4 results, when Phillip Securities analyst Helena Wang downgraded Netflix stock to Hold from Sell but increased the price target to $870 from $695.
Wang raised her FY25 revenue estimate by 4% to reflect solid membership additions and growing ads business. The analyst also noted higher margins due to increasing operating leverage, cost discipline, and continued gradual price hikes. Nonetheless, the analyst turned bearish due to valuation concerns following the recent rally.
Wall Street’s average NFLX stock price target of $1,103.53 implies about 13% upside potential from current levels.
