On Wednesday, KeyBanc Capital Markets sustained their optimistic stance on Netflix (NASDAQ:NFLX) stock, maintaining an Overweight rating and a price target of $1,000.00.
The firm's analysts expressed confidence in Netflix's performance despite potential adjustments to the company's 2025 expectations due to foreign exchange (FX) headwinds. Patterson pointed out that the impact of the FX reset might be less significant than initially anticipated for several reasons.
The analysts highlighted that user engagement with Netflix remains robust, supported by a strong content lineup. They also noted upcoming monetization opportunities and mentioned that Netflix's hedging strategies could soften the blow from FX challenges.
These factors contribute to the belief that a reduction in expectations might not be as severe as feared.
The analysts elaborated on the current market sentiment, indicating that with Netflix shares trading at 27 times the estimated 2026 earnings per share, investors appear more inclined to re-engage with the stock following a FX reset.
This suggests a growing willingness among investors to look past short-term currency fluctuations and focus on the company's long-term value.
KeyBanc's price target of $1,000.00 for Netflix is based on a 32.5 times multiple of the estimated 2026 earnings per share. This valuation reflects the firm's confidence in Netflix's ability to grow and monetize its user base effectively over the coming years.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.