Wedbush raised the firm’s price target on Netflix (NFLX) to $1,200 from $1,150 and keeps an Outperform rating on the shares. The firm believes Netflix is positioned to accelerate ad tier revenue contribution for the next several years by adding live events, improving its advertising solutions and targeting, and broadening its content strategy. While massive subscriber growth was the primary driver in 2024, Wedbush expects price increases to drive revenue growth in 2025, and the ad tier to drive revenue higher in 2026. As Netflix expands from here, its contribution margin can massively exceed the firm’s estimates, driving outsized free cash flow.
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