KeyBanc Capital Markets analysts said in a client note Wednesday that the Netflix (NASDAQ:NFLX) net add momentum is continuing amid the content ramp.
The firm raised its Netflix price target to $705 from $580 per share, maintaining an Overweight rating on the stock.
The firm continues to see signs that Netflix's content quality is improving and they believe this creates a clear catalyst path as engagement should drive a monetization ramp both in price increases and ad revenue.
"Netflix's QTD [quarter-to-date] content slate appears solid, with six series (Avatar, Berlin, Fool Me Once, The Gentlemen, Griselda, and Love is Blind) posting >250M hours of viewership," said the firm.
They added: "We are cautiously optimistic that this Thursday's release of 3 Body Problem will be another strong 1Q contributor."
KeyBanc now anticipates 2025E and 2026E revenue and EPS growth of ~14% and 10% year-on-year and ~31% and 22% year-on-year, respectively, with EPS reaching $28.18 in 2026E.