US brokerages continue their bullish stance on Netflix as they see the streaming giant continue its dominance with its strong subscriber base, more live streaming events, and robust advertising revenue.
Netflix’s stock had hit its all-time high of $1,215.91 on May 28. The stock has gained over 33% in 2025 so far.
Netflix continues to impress brokerages
Evercore ISI maintained its outperform rating and raised the target price to $1,350.
Bank of America (BofA) also kept a buy rating and increased the target price to $1,490.
Evercore ISI did a survey in the US and UK and has modelled their views based on that.
Live streaming to push Netflix’s dominance
Evercore ISI’s analyst Mark Mahaney noted that 53% of US residents watched live events on Netflix and 50% would keep their subscriptions if more live events were included.
Netflix streamed a wide variety of live events such as Jake Paul vs Mike Tyson boxing match, NFL Christmas Day games, Screen Actors Guild Awards, and Rafael Nadal vs Carlos Alcaraz tennis match.
The company also acquired a $5 billion deal to stream World Wrestling Entertainment’s (WWE) Raw for 10 years from 2025.
BofA said the company’s live events would attract a larger audience and boost ad-supported engagement.
Advertising revenue growth
Mahaney also said Netflix’s $7.99 ad-supported plan would be very valuable if a recession happened.
In its first quarter results, Netflix’s revenue surged 12.5% to $10.54 billion.
This growth was eveen after the company raised prices for all its subscription plans.
The streaming giant expects 15% revenue growth in Q2 due to growth in membership and advertising revenue.
BofA said the monthly active subscribers of the ad-supported plan reached 94 million from 70 million in November 2024.
The company also added 19 million subscribers globally in the fourth quarter.
Cable and streaming advantage
Evercore ISI also noted that Netflix’s premium plan of $24 is cheaper than cable’s bundle plans.
It’s live streaming and other content options provide Netflix with the advantage to raise prices in the future, the brokerage added.
Mahaney also pointed out from the survey’s results that Netflix subscribers have a higher level of satisfaction with the service.
Netflix also had flat viewing trends in the second quarter while its streaming peers saw dip in numbers, he added.
More than 40% of US respondents and 67% of UK respondents ranked it as best in content quality, ranking it over Amazon Prime and Disney’s Hulu.
BofA also said that Netflix now reaches the 18-34 year old category of viewers more than any US broadcast or cable networks.
Netflix has grant plans for the future as the company is aiming to reach a $1 trillion market capitalisation in 2030.
It also aspires to double its revenue and triple its operating income by then.
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