Netflix (NASDAQ:NFLX) wins bullish reviews after its ad-supported tier hit 94 million monthly active usersup more than 20 million since November and soaring from 40 million in May 2024highlighting accelerating monetization of its $7.99 ad plan versus the $17.99 ad-free entry point.

Evercore's Mark Mahaney reiterated a Buy rating with a $1,150 price target following Netflix's annual Upfront Presentation, where management showcased the ad tech platform rollout and new viewership data, while noting that ad viewers now watch 41 hours/month on AVOD.

BMO Capital's Brian Pitz also stuck with Buy and a $1,200 target, citing positive second-half 2025 monetization tailwinds from the upcoming Ad Suite launch in EMEA and a planned 2026 rollout of AI-powered ad formats.

Seaport Research's David Joyce lifted his target to $1,230, praising Netflix's in-house ad capabilities and flexibility across formats even as subscription price hikes and membership growth continue to underpin the majority of revenue.

The FT-reported upgrades reflect growing confidence that Netflix can parlay ad traction into material revenue, offsetting subscriber-growth plateaus in mature markets. Analyst commentary underscored that with advertising now accounting for a growing share of overall ARPU, Netflix may unlock a multi-year ad-revenue catalyst.

Why it matters: stronger ad-tier engagement and rising price targets suggest Netflix's valuation could re-rate as investors price in incremental revenue from AVOD.

This article first appeared on GuruFocus.

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