KeyBanc raises price targets on Spotify, Netflix shares

KeyBanc analysts are bullish on streaming giants Netflix (NASDAQ:) and Spotify (NYSE:), raising their price targets for both companies in separate notes Wednesday.

For Netflix, KeyBanc expects a strong second-quarter earnings report, citing a “strong content slate” and continued subscriber growth.

“In our view, recent price increases by competitors and ongoing low rates of churn support Netflix price increases over coming quarters,” states the KeyBanc note.

They maintain an Overweight rating and raise the Netflix price target to $735 per share from $707 (based on a 31x multiple of 2025 estimated earnings).

KeyBanc also sees upside for Spotify. While acknowledging potential short-term headwinds in subscriber growth, they believe the market underestimates Spotify’s long-term potential.

“Consensus appears too conservative on 2025E-2026E revenue growth, gross margin, and operating margin,” says the bank.

They reiterated an Overweight rating on the stock and raised the price target to $410 per share from $400 (based on a combination of sales and free cash flow multiples).