Netflix stock holds steady as Benchmark reiterates Hold rating

Investing.com - Benchmark has reiterated its Hold rating on Netflix (NASDAQ:NFLX), currently valued at $486 billion, following what the firm described as a "surprisingly pedestrian" third quarter. According to InvestingPro analysis, Netflix is trading above its Fair Value, despite achieving a perfect Piotroski Score of 9, indicating strong financial health.

Netflix delivered third-quarter revenue in line with consensus expectations, while operating income would have exceeded forecasts if not for a significant Brazilian tax impact, according to Benchmark.

The streaming giant showed strength in mature markets with record engagement levels, though Benchmark noted relative underperformance in emerging markets that were expected to drive stronger growth.

Netflix provided fourth-quarter revenue guidance approximately $50 million ahead of Benchmark’s previous forecast, which was already $20 million above consensus estimates.

Benchmark suggested potential upward bias to 2026 financial projections, possibly as early as the fourth-quarter earnings call, citing multiple growth initiatives including the company’s gaming business, new ad formats, user interface changes, Amazon partnership, and expanding programmatic advertising offerings.

In other recent news, Netflix reported its third-quarter revenue of $11.5 billion, marking a 17.2% increase year-over-year, aligning with expectations and showing slight growth acceleration. Despite the positive revenue figures, the company faced a $619 million charge due to a Brazilian tax dispute, which impacted its operating income. Analysts have shared varied perspectives on Netflix’s financial outlook. TD Cowen reiterated its Buy rating with a price target of $1,425, emphasizing the company’s subscriber and advertising revenue growth. Similarly, Rosenblatt Securities raised its price target to $1,530, maintaining a Buy rating, citing strong growth. Conversely, Wedbush lowered its price target to $1,400, expressing concerns over anticipated slower growth in the latter half of 2025. KeyBanc also maintained an Overweight rating with a $1,390 price target, despite noting Netflix’s recent underperformance compared to market indices. Canaccord Genuity kept its Buy rating with a $1,525 target, acknowledging limited upside in the fourth quarter.

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