Netflix Inc (NASDAQ:NFLX, ETR:NFC) posted stronger-than-expected financial results and consistent momentum across key metrics for the first quarter of 2025, with both Bank of America and Wedbush analysts reaffirming their bullish views on the streaming giant.
Each firm raised its price target, Bank of America to $1,175 and Wedbush to $1,200, highlighting confidence in Netflix’s operating model and longer-term growth levers.
Shares of Netflix traded up 1.7% at $989 on Monday afternoon.
Bank of America described Netflix as “predictable in an unpredictable world,” pointing to the company’s ability to deliver 13% year-over-year revenue growth for the quarter and “encouraging” Q2 guidance.
They noted that while advertising represents a small portion of Netflix’s business today, it has significant growth potential.
“The longer-term prospects are notably robust, driver by unique engagement and content, while investments in ad-tech capabilities (e.g. enhanced targeting, better measurement, addressability, etc.) should drive healthy growth for years to come,” they wrote.
They reiterated their ‘Buy’ rating on Netflix.
“In our view, Netflix shares will be fueled by continued positive subscriber and earnings momentum in addition to evolving advertising and live opportunities,” analysts wrote.
“Supported by its world-class brand, leading global subscriber scale, position as an innovator and increased visibility in growth drivers, we believe that Netflix should continue to outperform.”
Leading the streaming wars
Netflix has established a “virtually insurmountable lead” in the streaming wars, Wedbush wrote, repeating its ‘Outperform’ rating.
Analysts noted that even without reporting subscriber additions, commentary and pricing actions support the view that growth remains healthy.
The firm highlighted the company’s content pipeline, $18 billion in annual content spend, and increasing contribution from its ad-supported tier as positioning Netflix to exceed 2025 guidance.
It expects pricing to drive near-term revenue growth, with the ad tier becoming a larger contributor in 2026.
“While massive subscriber growth was the primary driver in 2024, we expect price increases to drive revenue growth in 2025, and the ad tier to drive revenue higher in 2026,” Wedbush wrote. “As Netflix expands from here, its contribution margin can massively exceed our estimates, driving outsized free cash flow.”