Evercore ISI Raises Netflix Price Target

Evercore ISI raised its price target for Netflix (NASDAQ:NFLX) stock from $710 to $750 in a note to clients on Tuesday, citing strong survey results and a promising outlook for the company.

The firm continues to rate Netflix as Outperform, highlighting the streaming giant’s robust financial, fundamental, and competitive position. Evercore ISI states that Netflix is in the best shape it has ever been.

“We stick with the conclusion we have drawn since early ’24: Netflix is in the strongest position financially, fundamentally, and competitively that we have ever seen,” the analysts stated.

Evercore ISI’s confidence comes from detailed survey work in the U.S. and Mexico, recent channel checks, and a proprietary analysis of potential future price increases.

Survey Insights

The firm’s recent surveys, which include the 51st quarterly U.S. survey and the 4th annual Mexico survey, reveal stable core metrics for Netflix, such as content selection, customer satisfaction, and churn rates.

Notably, Evercore reports that Netflix maintains high satisfaction scores, achieving 83% in Mexico. The survey results indicate Netflix is expanding its competitive lead over other streaming platforms, particularly in content quality.

Growth Potential

The firm sees significant growth potential as Netflix explores live events and gaming. Remarkably, 60% of current Netflix subscribers are likely to remain with the service if live content is added, such as live sports and stand-up comedy.

Gaming adoption on the platform is also rising rapidly, with 47% of U.S. subscribers engaging with Netflix’s gaming offerings and expressing high satisfaction levels. Evercore ISI believes Netflix has multiple avenues for growth.

Furthermore, the upcoming release of “Squid Game II” and the debut of two NFL games on Netflix are expected to further bolster the streaming giant’s outlook.