TD Cowen Raises Netflix Price Target to $1,440 Ahead of Q2 Earnings Report
Summary
TD Cowen has raised its price target for Netflix (NFLX) to $1,440 from $1,325, maintaining a 'Buy' rating. The upgrade is based on expectations of strong Q2 revenue growth of 17% year-over-year, driven by robust subscriber additions, and anticipated financial results exceeding consensus. The firm also notes Netflix's increasing pricing power and foresees continued upside from a strong 2H25 content slate, advertising momentum, margin expansion, and ad tech advancements.
TD Cowen Elevates Netflix Price Target to $1,440 Amid Strong Q2 Outlook
NEW YORK, NY – July 8, 2025 – Investment firm TD Cowen has significantly raised its price target for streaming giant Netflix (NASDAQ: NFLX) to $1,440, up from its previous target of $1,325. The firm has simultaneously reiterated its 'Buy' rating on the stock, signaling strong confidence in Netflix's performance leading into its second-quarter earnings report and for the remainder of 2025.
Anticipated Strong Q2 Performance
TD Cowen's optimistic outlook is primarily driven by expectations of a robust second quarter. The firm projects Netflix's Q2 revenue to achieve a substantial 17% year-over-year growth. This anticipated surge is largely attributed to continued strong subscriber additions, indicating Netflix's ongoing ability to attract and retain its global audience.
Furthermore, TD Cowen's analysis suggests that Netflix's financial results for Q2 will surpass current market consensus. The firm forecasts that both revenue and operating income will exceed analyst consensus estimates by 1.5% and 3.1%, respectively. These projections underscore a belief in Netflix's operational efficiency and its capacity to generate higher-than-expected financial returns.
Growing Pricing Power and Future Growth Drivers
A key factor contributing to TD Cowen's upgraded price target is Netflix's demonstrated pricing power. According to the firm's latest proprietary survey, Netflix is successfully gaining leverage in its pricing strategy. This is notable, especially considering the company implemented a price increase in January 2025. The survey results suggest that despite these adjustments, subscriber willingness to pay remains high, indicating strong brand loyalty and perceived value among its user base.
Looking beyond the immediate quarter, TD Cowen analysts highlight several strategic initiatives and content plans that are expected to fuel Netflix's continued growth and reinforce its market leadership:
- Blockbuster Second Half 2025 Content Slate: A highly anticipated lineup of original programming and licensed content in the latter half of the year is expected to drive significant subscriber engagement and acquisition.
- Advertising Momentum: The ongoing expansion and success of Netflix's advertising-supported tiers are projected to contribute substantially to revenue growth.
- Margin Expansion: Continued focus on cost efficiencies and scaling operations are anticipated to lead to further improvements in profit margins.
- Ad Tech Rollout: Advancements and broader implementation of Netflix's advertising technology are expected to enhance ad revenue generation and advertiser appeal.
These combined factors are anticipated to solidify Netflix's dominant position in the competitive streaming landscape and provide significant upside potential for its stock.