MoffettNathanson boosts Netflix's stock rating and price target significantly

In the United States, on March 17, 2025, MoffettNathanson, a reputable financial research firm, made a significant upgrade to Netflix's stock. They elevated their rating from neutral to buy, signaling increased confidence in the company's future performance. Along with this upgrade, the firm also updated its price target, raising it from $850 to $1,100 per share. This adjustment was based on MoffettNathanson's belief that Netflix is in a strong position to expand its margins and remains a formidable player in the ongoing streaming wars. Analyst Robert Fishman asserted that Netflix has solidified its status as the leading company in this competitive market. Fishman highlighted that, despite its robust user base, Netflix still has opportunities for further growth. The firm's analysis indicated that Netflix could enhance its revenue from existing subscribers and capitalize on the rising advertising segment. In particular, the report noted that Netflix's revenue per hour viewed is still undervalued compared to the level of engagement it fosters among its audience. Fishman emphasized that Netflix has a significant consumer surplus that could be monetized in the future, providing a favorable outlook for the company's financial growth. Moreover, Fishman's forecasts suggested that Netflix could achieve annual margin expansions of at least 200 basis points over the following years, potentially reaching a 40% margin by 2030. This ambitious projection indicates a positive trajectory for Netflix's financial health and profitability in the coming years. Furthermore, the overwhelming sentiment among analysts remains bullish, with a substantial majority rating the stock as either a buy or strong buy. According to LSEG data, 34 out of 47 analysts covering Netflix express strong confidence in the company’s trajectory. As the streaming landscape evolves, Netflix's strategic decisions and its ability to adapt to market demands will be crucial to maintaining its growth momentum. Investors are likely to watch closely how Netflix executes its plans for maximizing revenue from both subscriptions and advertising, as these areas are projected to drive future profitability.