Analysts think Netflix is a good bet in a bad economy, raise price targets
Netflix’s earnings beat last week seems to have cemented analysts’ view that the company is a good hedge against a bad economy.
JPMorgan analysts raised their Netflix price target to $1,150, citing a “stable operating environment w/no indications of macro impact.” Wells Fargo raised its price target to $1,222, saying, “We think NFLX has substantially higher relative appeal in this uncertain macro.”
Bank of America reiterated its $1,175 price target and raised its revenue estimates for 2025 and 2026, writing, “The company remains very well positioned in the Media and Entertainment landscape with sustainable growth drivers that should prove to be predictable and defensive amid a wide range of macroeconomic scenarios.” Goldman Sachs, Evercore ISI, Morgan Stanley, and Piper Sandler also raised price targets, CNBC reports.
Netflix, for what it’s worth, seems to agree. On the company’s earnings call last week, Co-CEO Gregory Peters said:
“We’re paying close attention clearly to the consumer sentiment and where the broader economy is moving. But based on what we are seeing by actually operating the business right now, there’s nothing really significant to note.
So what are we looking at? Primary metrics and indicators would be our retention, that’s stable and strong. We haven’t seen any significant changes in plan mix or planned take rate to part of that question. Our most recent price changes have been in line with expectations. Engagement remains strong and healthy. So things generally look stable from that lens. Stepping back, we also take some comfort in the fact that entertainment historically has been pretty resilient in tougher economic times.
Netflix specifically also has been generally quite resilient, and we haven’t seen any major impacts during those tougher times, albeit, of course, over a much shorter history.”
The stock is up 1.8% in premarket trading to $991.35, meaning it has quite a bit of room to go higher if you believe those analyst targets.
Bank of America reiterated its $1,175 price target and raised its revenue estimates for 2025 and 2026, writing, “The company remains very well positioned in the Media and Entertainment landscape with sustainable growth drivers that should prove to be predictable and defensive amid a wide range of macroeconomic scenarios.” Goldman Sachs, Evercore ISI, Morgan Stanley, and Piper Sandler also raised price targets, CNBC reports.
Netflix, for what it’s worth, seems to agree. On the company’s earnings call last week, Co-CEO Gregory Peters said:
“We’re paying close attention clearly to the consumer sentiment and where the broader economy is moving. But based on what we are seeing by actually operating the business right now, there’s nothing really significant to note.
So what are we looking at? Primary metrics and indicators would be our retention, that’s stable and strong. We haven’t seen any significant changes in plan mix or planned take rate to part of that question. Our most recent price changes have been in line with expectations. Engagement remains strong and healthy. So things generally look stable from that lens. Stepping back, we also take some comfort in the fact that entertainment historically has been pretty resilient in tougher economic times.
Netflix specifically also has been generally quite resilient, and we haven’t seen any major impacts during those tougher times, albeit, of course, over a much shorter history.”
The stock is up 1.8% in premarket trading to $991.35, meaning it has quite a bit of room to go higher if you believe those analyst targets.
