Netflix stock remains a Buy at Canaccord despite limited Q4 upside

Investing.com - Canaccord Genuity maintained its Buy rating on Netflix (NASDAQ:NFLX) with a price target of $1,525.00 following the streaming giant’s third-quarter results. The streaming leader, currently trading near $1,241, has delivered an impressive 57% return over the past year and maintains a perfect Piotroski Score of 9, according to InvestingPro data.

Netflix reported Q3 revenue in line with expectations, showing modest quarter-over-quarter acceleration despite operating income falling below guidance due to a $619 million charge related to a Brazilian tax dispute. The company maintains robust financials with a "GREAT" overall financial health score and sufficient liquidity to cover its obligations.

The company achieved its highest-ever quarterly view share in both the US and UK markets during Q3, with total viewing hours growth accelerating compared to the first half of 2025, driven by a strong content slate and momentum in original programming.

Netflix delivered its strongest quarter of advertising sales to date and revised its forecast, now expecting to more than double ad revenue in 2025 rather than "roughly double" as previously stated, with programmatic revenue growing faster than direct ad sales.

Despite issuing Q4 guidance that aligned with market expectations, Netflix shares declined in after-hours trading, which Canaccord attributes to limited upside potential for second-half revenue, though the firm views the pullback as a buying opportunity given record engagement levels and ongoing margin expansion. With a market cap of over $527 billion and trading above its Fair Value, investors can access comprehensive valuation analysis and 16 additional ProTips through InvestingPro’s detailed research reports.

In other recent news, Netflix has reported its third-quarter 2025 earnings, showing mixed results. The company met revenue expectations, achieving a 17% year-over-year growth, though operating income was affected by a $619 million tax dispute in Brazil. Despite this, UBS maintained a Buy rating with a $1,495 price target, citing solid revenue growth and operating income that surpassed expectations when excluding the tax charge. Piper Sandler adjusted its price target for Netflix to $1,400 from $1,500, maintaining an Overweight rating due to the mixed earnings outcome. Meanwhile, JPMorgan lowered its price target to $1,275, describing the results as solid but lacking significant upside. Raymond James reiterated its Market Perform rating, noting that revenue slightly missed expectations due to foreign exchange movements. Goldman Sachs kept its Neutral rating, highlighting key factors that could influence Netflix’s future performance, including content execution and ad-supported subscription scaling. These developments indicate varied analyst perspectives on Netflix’s financial health and future prospects.

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