Netflix stock rating reiterated at Neutral by Goldman Sachs

Investing.com - Goldman Sachs has reiterated its Neutral rating on Netflix (NASDAQ:NFLX) with a price target of $1,300.00 following the streaming giant’s Q3 2025 earnings report. According to InvestingPro data, Netflix currently appears overvalued, despite showing remarkable strength with a perfect Piotroski Score of 9 and delivering a 55.34% return over the past year.

The investment firm expects a muted market reaction to Netflix’s quarterly results, which showed in-line revenue performance and Q4 2025 revenue guidance roughly matching Street expectations. Netflix’s Q3 operating margin underperformance was largely attributed to a $619 million Brazilian tax charge. The company maintains strong fundamentals, with InvestingPro analysis showing healthy revenue growth of 14.84% and an impressive financial health score of 3.21 (rated as "GREAT").

Netflix highlighted strong engagement trends in its shareholder letter, noting that U.S. and UK view share grew by 15% and 22% respectively since Q4 2022. The company also reported positive results from its new TV user interface rollout and momentum in its advertising operations.

For Q4 2025, Netflix guided for EBIT of $2.86 billion, slightly lower than Goldman Sachs had modeled. The company also increased its annual free cash flow estimate to $9 billion, up from its previous range of $8-8.5 billion.

Goldman Sachs anticipates investor focus will center on how Netflix’s Q4 content slate might impact operational momentum heading into 2026, along with progress on the advertising tier and competitive dynamics affecting engagement growth potential.

In other recent news, Netflix has announced that Mattel Inc. and Hasbro Inc. will serve as global co-master toy licensees for its film "KPop Demon Hunters." This partnership will allow the companies to create dolls, action figures, games, and other merchandise based on the movie, which has achieved over 325 million views worldwide in just 91 days. The products are expected to launch in spring 2026. Meanwhile, UBS has reiterated its Buy rating on Netflix, maintaining a price target of $1,495, citing strong content and expected revenue growth of 17% for the third quarter. UBS also anticipates a 25% increase in operating income, in line with Netflix’s management guidance. BMO Capital has also reiterated its Outperform rating with a $1,425 price target, highlighting the record-breaking viewership of "KPop Demon Hunters" and a promising content slate. Bernstein SocGen Group has maintained its Outperform rating and a $1,390 price target, despite mixed second-quarter results. These developments underscore Netflix’s strategic moves and strong content performance in recent times.

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