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JPMorgan (NYSE:JPM) analyst firm reiterated its Neutral rating and $1,220.00 price target on Netflix (NASDAQ:NFLX) on Friday. The firm explained that its May 19 downgrade to Neutral was not due to concerns about Netflix’s leadership position in streaming but because "the risk/reward in NFLX shares has become more balanced" following significant stock price appreciation. According to InvestingPro data, Netflix shares have delivered an impressive 86% return over the past year, now trading near their 52-week high of $1,262.81.
The firm noted that Netflix shares currently trade at 40 times 2026 estimated GAAP earnings per share and 44 times 2026 estimated free cash flow, suggesting the stock already factors in potential upside to 2025 guidance. Current InvestingPro analysis indicates the stock is trading above its Fair Value, with a P/E ratio of 56.32x and high EBITDA valuation multiples. JPMorgan also indicated that easing tariff and macroeconomic concerns could drive rotation into other internet names during the seasonally slower summer months.
Since the May downgrade, JPMorgan has received three consistent areas of pushback from investors: expectations that the second half content slate may be "the strongest 6-month period ever," the early stage of advertising with potential for better monetization, and projections that estimates will increase based on content strength, pricing power, and advertising growth. These growth expectations align with Netflix’s strong fundamentals, reflected in its perfect Piotroski Score of 9 and GREAT Financial Health rating from InvestingPro, which offers 20 additional key insights about the company.
The firm continues to project double-digit foreign exchange neutral revenue growth for Netflix through 2026, with ongoing margin expansion, increasing free cash flow, and greater share buybacks. These positive factors support the company’s long-term outlook as a streaming leader.
Despite these growth prospects, JPMorgan maintained its position that Netflix shares are "well owned and the risk/reward is less compelling," balancing the company’s strong fundamentals against its current valuation metrics.
In other recent news, Netflix has caught the attention of several financial analysts, resulting in a series of upgraded stock price targets. UBS raised its price target for Netflix to $1,450, highlighting strong secular trends and competitive dynamics that could enhance the company’s monetization and operating leverage. Similarly, Jefferies increased its target to $1,400, pointing to Netflix’s strong content lineup and recent price increases as positive catalysts. BofA Securities also lifted its price target to $1,490, citing Netflix’s robust performance and growth prospects, including impressive subscriber gains and expansion into advertising and sports content.
Additionally, Oppenheimer raised its price target to $1,425, maintaining an Outperform rating, and emphasized Netflix’s global streaming position and potential for significant advertising revenue growth. In a strategic move, Netflix announced a plan to invest over $1.14 billion in Spanish content production over the next four years, further expanding its international footprint. This investment aligns with Netflix’s broader strategy to increase original content production globally. These developments illustrate Netflix’s ongoing efforts to strengthen its market position and drive growth in the competitive streaming industry.
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