BMO on Netflix (NFLX): 'Management mentioned in April 2025 that it is leaning into mainstream, established titles, including GTA'

BMO Capital analyst Brian J. Pitz reiterated an Outperform rating and $1,200.00 price target on Netflix (NASDAQ: NFLX)

The analyst comments "Netflix Rolling Out Enhanced TV Experience — Netflix will begin to launch its new TV experience globally. The output is 1) improved discovery powered by AI for both TV and mobile, 2) integrating a conversational experience, which improves content discovery, and 3) a design revamp to include a more natural aesthetic. Netflix will report its 1H25 engagement report in tandem with its 2Q25 earnings in July. We believe these features should reduce churn, improve engagement, and continue to drive enhanced ad monetization. Netflix continues to innovate and strengthen its UI for its +302M members. These capabilities are a function of Netflix's effective ad stack, which is underappreciated by investors. Content Is Localized in +50 Markets, Likely Offsetting Changing Tariff Landscape — President Trump mentioned a potential tariff on films produced in international markets. With Netflix producing local content in over +50 countries and its effective ability to source licensed shows/films, we believe the consumer experience will remain unchanged. In other words, engagement will continue to grow at attractive levels, and pricing power remains a growth lever in the near and longer term. Netflix Upfront on 5/14 Should Be a Catalyst — We continue to look for updates on AVOD user penetration and advertiser adoption of various ad units, including lower funnel QR codes. We are modeling ~4.5-5x ads/hour/person exiting 2025E and rising to just 6x in 2026E. Gaming Remains a Longer-Term Opportunity—Netflix highlighted that these updates are intended to connect shows, movies, and games more effectively. Management mentioned in April 2025 that it is leaning into mainstream, established titles, including GTA, which just released its promo trailer (no gameplay yet) ahead of its May 5/26/26 launch."

For an analyst ratings summary and ratings history on Netflix click here. For more ratings news on Netflix click here.

Shares of Netflix closed at $1137.69 yesterday.

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