Analyst: Outperforming Netflix Stock Has More in the Tank

The equity has gained more than 87% year to date

Jake Scott

Deputy Editor

Dec 24, 2024 at 10:24 AM

NFLX

Shares of Netflix Inc (NASDAQ:NFLX) are unchanged after KeyBanc Capital upped its price target to $1,000 from $785 and reiterated its "overweight" rating. The analyst in question is confident in the streaming giant's growth potential and ability to outperform on the S&P 500 (SPX) in 2025.

The new price target represents a nearly 10% premium to Netflix stock's current perch of $915.31 and is just above its Dec. 11 all-time high of $941.75. The equity is up 87.7% since the start of 2024, and well on its way to a fifth-straight monthly gain.

There's room for additional covering brokerages to change up their recommendations. Coming into today, 17 of 41 analysts rated NFLX a "hold" or worse, while the average 12-month target price of $838.86 is an 8.3% discount to current levels, leaving room for upgrades and/or price-target hikes.

A shift in sentiment in the options pits could also help boost Netflix stock. This is according to its Schaeffer's put/call open interest ratio (SOIR) of 1.44 that ranks in the 98th percentile of annual reading. Echoing this, the security's 10-day put/call volume ratio of 1.00 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands above 92% of readings from the past 12 months.

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