Netflix, Inc. Stock Price Targets
Comprehensive analysis of short, mid, and long-term price targets for Netflix, Inc. (NFLX).
Give me a comprehensive price target analysis for Netflix, Inc. (NFLX).
I have successfully drawn the horizontal trendlines for NFLX's price targets extending 30 days into the future:
- Low Target ($750) in red
- Median Target ($1405) in green
- High Target ($1600) in blue
Executive Summary
Netflix (NFLX) exhibits a robust growth trajectory, with current valuation metrics indicating a high-growth stock. The stock trades at a premium P/E ratio, supported by strong margins, and the technical indicators suggest potential consolidation before further moves. Given the analyst consensus, the stock’s outlook remains optimistic, with substantial upside potential aligned with the high target.
Fundamental Analysis
| Metric | Value |
|---|---|
| Market Cap | $512.55B |
| Enterprise Value | $524.34B |
| Trailing P/E | 51.48 |
| Forward P/E | 50.72 |
| Price-to-Book | 20.54 |
| Return on Equity | 43.5% |
| Profit Margins | 24.6% |
| Gross Margins | 48.5% |
| Operating Margins | 34.1% |
| Debt-to-Equity | 67.87 |
| Total Cash | $8.39B |
| Total Debt | $16.93B |
The company maintains solid profitability margins, though its leverage is notable. The valuation multiples are high, justified by revenue growth and market positioning.
Earnings Analysis
- Recent Earnings: Consistent growth, with EBITDA around $7.7B and net income exceeding $3.1B for Q2 2025.
- EPS Trends: An upward trajectory with FY EPS increasing from ~$4.88 to ~$7.19 Q2 2025.
- Revisions: Both upward and downward revisions have been relatively stable; recent sentiment shows some positivity (+26 to +27 over the last 7-30 days).
- Earnings Quality: Revenue growth has been steady, margins are healthy, supported by cost controls and content investments.
Technical Analysis
- Current Price: $1206.21, slightly above the 50-day MA (~1224), indicating a possible consolidation phase.
- Moving Averages: Trending upward but showing signs of potential sideways movement.
- RSI: Around 61, suggesting moderate bullish momentum.
- MACD: Slight bullish offset, but close to neutral, indicating the need for confirmation of directional move.
Analyst Consensus & Price Targets
- Median target: $1405 (implying roughly 16% upside)
- High target: $1600 (33% upside)
- Number of analysts: 40
- The targets reflect confidence in continued growth, driven by subscriber expansion and content monetization.
Price Target Analysis
| Horizon | Target Price | Justification | Key Drivers |
|---|---|---|---|
| Short-term (3 months) | ~$1250 | Market consolidation, technical support at recent lows | Technical support, earnings momentum |
| Mid-term (12 months) | ~$1405 | Analyst consensus, ongoing subscriber growth, revenue acceleration | Content strategy, ARPU increase |
| Long-term (3+ years) | ~$1600 | Industry tailwinds, global expansion, streaming dominance | Market share gains, international growth, new content |