Netflix (NASDAQ:NFLX) shares rose more than 2% intra-day today after KeyBanc analysts raised their price target on the stock to $1,000 from $785, maintaining an Overweight rating. The increase reflects strong confidence in Netflix’s ability to sustain momentum and outperform broader markets into 2025, supported by a combination of strategic positioning and robust financial performance.
Netflix’s shares currently trade at approximately 9x next-twelve-months enterprise value-to-sales (EV/S), historically a peak level. However, the analysts see multiple factors enabling Netflix to surpass this valuation ceiling. The analysts highlighted a moderating competitive landscape, increased engagement driven by live events, and the platform’s superior revenue and earnings growth compared to industry peers. Additionally, Netflix’s ability to generate meaningful earnings per share (EPS) and free cash flow (FCF) offers a solid valuation foundation, further differentiating it from rivals.
KeyBanc’s updated price target reflects a 32.5x multiple on estimated 2026 EPS, underscoring optimism about Netflix’s continued market leadership and growth prospects.