Street Calls of the Week
Investing.com - Rosenblatt Securities has raised its price target on Netflix (NASDAQ:NFLX) to $1,530 from $1,515 while maintaining a Buy rating following the streaming giant’s third-quarter results. Currently trading at $1,241.35 with a market capitalization of $527.5 billion, Netflix has delivered an impressive 34.6% return year-to-date, though InvestingPro analysis suggests the stock is currently trading above its Fair Value.
The streaming service reported revenue of $11.5 billion for the third quarter of 2025, representing 17.2% year-over-year growth, which was in line with expectations and showed a slight acceleration from the second quarter’s constant currency growth rate. The company maintains a "GREAT" overall Financial Health score according to InvestingPro, which offers 16 additional valuable insights about Netflix’s performance and valuation in its comprehensive Pro Research Report.
Netflix’s operating profit of $3.25 billion and earnings per share of $5.87 missed estimates due to a one-time $619 million accrual related to a Brazilian tax matter dating back to 2022, which impacted cost of sales.
Excluding this one-time charge, Netflix’s operating income would have been $3.87 billion, representing 33% year-over-year growth and exceeding expectations by approximately 7%, according to Rosenblatt.
The firm’s new price target reflects slightly higher 2026 estimates and is based on a 45x price-to-earnings multiple applied to 2026 estimates, supported by Netflix’s approximately 30% earnings per share compound annual growth rate.
In other recent news, Netflix reported its third-quarter earnings, with revenue meeting expectations despite a $619 million charge related to a Brazilian tax dispute impacting operating income. Canaccord Genuity maintained its Buy rating on Netflix, with a price target of $1,525, while acknowledging limited upside for the fourth quarter. Piper Sandler lowered its price target to $1,400 from $1,500 but kept an Overweight rating, citing mixed results from the earnings report. JPMorgan also adjusted its price target to $1,275 from $1,300, maintaining a Neutral rating and noting solid results with a 33.6% operating margin, excluding the tax expense.
Goldman Sachs reiterated its Neutral rating with a $1,300 target, focusing on factors like content execution and margin expansion as key influences for future performance. Raymond James maintained a Market Perform rating, highlighting that revenue slightly missed expectations due to foreign exchange movements, but fourth-quarter guidance was in line with market predictions. These developments reflect varied analyst perspectives on Netflix’s financial performance and strategic direction.
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