Evercore ISI raised its price target for Netflix (NASDAQ:NFLX) stock from $710 to $750 in a note to clients on Tuesday, citing strong survey results and a promising outlook for the company.
The firm continues to rate Netflix as Outperform, highlighting the streaming giant's robust financial, fundamental, and competitive position. According to Evercore ISI, Netflix is in the best shape it has ever been.
"We stick with the conclusion we have drawn since early '24: Netflix is in the strongest position financially, fundamentally, and competitively that we have ever seen," the analysts stated.
The firm attributes this confidence to detailed survey work in the U.S. and Mexico, recent channel checks, and a proprietary analysis of potential future price increases.
Evercore ISI's recent surveys, which include the 51st quarterly U.S. survey and the 4th annual Mexico survey, are said to reveal stable core metrics for Netflix, such as content selection, customer satisfaction, and churn rates.
Notably, Evercore says Netflix maintains high satisfaction scores, with 83% in Mexico. The survey results are also said to indicate that Netflix is expanding its competitive lead over other streaming platforms, particularly in content quality.
Additionally, the firm sees significant growth potential in Netflix's foray into live events and gaming. They note that 60% of current Netflix subscribers are likely to stay with the service if more live content is added, such as live sports and stand-up comedy.
Gaming adoption on the platform is also rising rapidly, with 47% of U.S. subscribers engaging with Netflix's gaming offerings and reporting high satisfaction levels. Evercore ISI believes Netflix has multiple avenues for growth.
Furthermore, the firm says the upcoming release of "Squid Game II" and the debut of two NFL games on Netflix will further bolster the streaming giant's outlook.