Seaport Global top analyst David Joyce upgraded Netflix (NFLX) stock to a “Buy” rating from a Hold, ahead of the streaming giant’s Q3 earnings report scheduled for October 21. He also raised his price target from $1,230 to $1,385, implying 19.1% upside potential from current levels. “We would be buyers ahead of the 3Q25 print on Oct. 21,” Joyce noted in his pre-earnings research note.
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Joyce is a top analyst on TipRanks, ranking #859 out of 10,074 analysts tracked. He has a 66% success rate and an impressive average return per rating of 14.50%.
Netflix Poised for Growth from Ad Infrastructure Builds
Joyce pointed out to NFLX stock’s 30%+ gains so far this year. He believes that the share momentum has moderated lately as investors are digesting these mammoth gains already achieved this year. Nonetheless, he believes that Netflix is poised for significant gains ahead from “advertising infrastructure build-related monetization momentum.”
He highlighted that Netflix continues to grow its market share year-over-year compared to traditional TV, but Google’s (GOOGL) YouTube TV remains the overall leader in streaming share. Despite this, Joyce remains impressed with Netflix’s focus on professional, curated content that continues to drive strong audience engagement. Joyce has also factored in higher operating leverage and increased ad dollar revenue into his estimates due to market share gains.
For Q3FY25, Wall Street expects Netflix to report diluted earnings of $6.96 per share, significantly higher than Q3FY24’ figure of $5.40 per share. Similarly, the consensus for revenue is pegged at $11.52 billion, up 17.3% compared to the prior year period.
Is Netflix Stock Worth Buying?
Analysts remain divided about Netflix’s long-term outlook. On TipRanks, NFLX stock has a Moderate Buy consensus rating based on 27 Buys, nine Holds, and one Sell rating. The average Netflix price target of $1,397.81 implies 20.2% upside potential from current levels.
