Netflix price target raised to $1,175 from $1,000 at BMO Capital

BMO Capital raised the firm’s price target on Netflix (NFLX) to $1,175 from $1,000 and keeps an Outperform rating on the shares after its Q4 earnings beat. The company’s Advertising-Based Video on Demand – AVOD – upside and pricing optionality drove all-time high net subs growth of 19M, with ad revenue doubling in 2024 and expected to double again in 2025, the analyst tells investors in a research note. Gaming also remains a massive $140B opportunity given the company’s owned and licensed IP, the firm adds, also noting that Netflix’s planned content investments in 2025 position it well for ongoing wallet share gains as linear TV viewership decline.