Netflix ($NFLX) stock has been on a tear this year and closed at record highs every day this past week. As a result, analysts are becoming increasingly bullish on the video streamer, with Pivotal Research’s Jeff Wlodarczak raising his price target to $1,100. This is the highest target on Wall Street and suggests a 20% upside from current levels. It’s worth noting that Wlodarczak has a 67% success rate on NFLX stock, with an average return of 22% per rating.
Bank of America and Jefferies also increased their targets to $1,000 due to Netflix’s push into live events, like the Jake Paul vs. Mike Tyson boxing match, which drew over 108 million global viewers despite technical problems. Analysts believe Netflix’s live programming will help reduce subscriber churn and justify higher pricing. In fact, Netflix’s move into live content, including its upcoming NFL Christmas Day doubleheader, is being praised as a game-changer.
The streamer’s ad-supported tier has surged to 70 million monthly users compared to 40 million in May, and live events are expected to boost ad revenue further. Jefferies called the success of the Paul-Tyson match a “breakthrough” and expects the NFL games to outperform traditional TV in terms of ad dollars.
Some Analysts Are Cautious about Netflix’s Long-Term Momentum
Separately, while Netflix is dominating the streaming wars, some analysts are cautious about its long-term momentum. Year-over-year engagement is flat, which raises questions about future pricing power. In addition, the company expects revenue growth to slow from 15% this year to 11%-13% in 2025. With its stock already at lofty valuations, MoffettNathanson’s Robert Fishman warns that Netflix’s future gains could be harder to achieve as its subscriber base matures and revenue growth decelerates.
What Is Netflix’s Stock Prediction?
Overall, analysts have a Moderate Buy consensus rating on NFLX stock based on 24 Buys, 10 Holds, and two Sells assigned in the past three months, as indicated by the graphic below. However, after an 87% rally in its share price over the past year, the average NFLX price target of $816.17 per share implies 9.1% downside risk.
