J.P. Morgan reaffirmed its bullish stance on Netflix (NFLX, Financials), assigning a $1,150 price target as the streaming company crosses 300 million global subscribers and reports accelerating earnings growth.
Analyst Doug Anmuth, who maintained a Buy recommendation, gave the revised perspective based on the firm's most recent research report. Laurent Yoon, a Bernstein analyst, set an even more sanguine $1,200 price target. In the fourth quarter of 2024 alone, Netflix attracted 19 million paying members, exceeding competitor subscription growth rates like Disney+, Apple TV+, and HBO Max. While 2025 sales growth is predicted to come in between 12% and 14%, full-year income jumped 16% year over year.Cost management initiatives include a crackdown on password sharing and a more selective approach to content investment help to boost operating margins from 21% in 2023 to 27% in 2024. Based on business projections, free cash flow in 2024 will be $6.9 billion; in 2025 it is expected to be $8 billion.Instead of vying for expensive sports broadcasting rights, Netflix has concentrated on regional content and one-off eventsa strategy that experts believe has increased return on investment and strengthened the company's cost-effective production approach.Shares dropped to $860 during a March market downturn after rising from around $480 in late 2023 to over $1,000 in early 2025.Though it does not pay a dividend, Netflix keeps returning money via a larger stock repurchase program. Key elements supporting Netflix's long-term orientation in the streaming market mentioned by analysts were its worldwide subscriber base, emphasis on financial discipline, and avoidance of high-risk ventures.
This article first appeared on GuruFocus.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.