Netflix ( NFLX , Technology ) had a rough first half to 2025. The stock has been down by 10% in the last month , but analysts are optimistic about a comeback.

BMO Capital Markets analyst Brian J. Pitz reiterated his Buy rating on the streaming giant and raised his price target to $1,000 from $825. That revised target implies a long 21% upside relative to Tuesday's close. Netflix's burgeoning uptake of live sportsfrom exclusive airing of events like Brian Mayes' stave boxing match with Jake Paul.EXIF with Lance Honer' McCrary and NFL Christmas games to WWE's Monday Night Rawis the propelling force behind the evermore bullish stance on the stock.

In addition, Netflix also gets the U.S. rights to the 2027 and 2031 FIFA Women's World Cup tournaments, a Pitz says will usher new subscribers into the platform's ad-supported tier. Pitz said his 2025 year-end forecast for Netflix would surge to 90 million subscribers (from 60 million) as the company starts to introduce an ad-supported plan, which is priced at $6.99 a month. The move to strong viewership numbers is likely to make Netflix even more attractive to advertisers, perhaps even lapping up a percentage of the estimated $3bn global advertising spend by the end of 2025.

But the stock has faltered recently, falling 11% since December 24 on worries about its valuation. Shares are now trading at a premium 39 times forward earnings compared with its peers. Nevertheless, Jason Helfstein of Oppenheimer, another person who believes Netflix has the potential for a live events effort, also has a valuation concern and has cut the stock to a $1,040 price target.

This article first appeared on GuruFocus .