Netflix (NFLX) is well-positioned to lead the media and entertainment sector, supported by "sustainable growth drivers that should prove to be predictable and defensive amid a wide range of macroeconomic scenarios," BofA Securities said Friday in a report.

Netflix's expanding ad business, international partnerships and premium content slate are expected to fuel continued momentum, and the company's ability to scale profitably while navigating macro shifts reinforces its long-term position, the report said.

Following solid Q2 results, BofA raised its 2025 revenue estimate to $45.1 billion from $44.5 billion, and its operating margin forecast to 30.1% from 29.4%.

Q2 revenue grew 16% from a year earlier, driven by subscriber growth, higher pricing and increased ad revenue, while earnings per share and free cash flow exceeded expectations, BofA said.

Growth was broad-based across regions with each posting double-digit currency-neutral increases, the report said.

BofA has a buy rating on Netflix stock with a $1,490 price target.

Netflix shares fell 4.9% in recent Friday trading.

Price: 1211.20, Change: -62.97, Percent Change: -4.94