Canaccord Reiterates Buy Rating on Netflix (NFLX)

Canaccord analyst Maria Ripps reiterated a Buy rating and $125.00 price target on Netflix (NASDAQ: NFLX).

The analyst commented: "Netflix reported solid Q2 results, with revenue in line with guidance and consensus and OI margin coming in ahead of both. As engagement has become a growing investor debate, management met the topic head-on, noting that not all hours carry equal value in terms of quality, variety, and quantity. Live programming illustrates the point, expected to account for ~5% of 2026 content spend but only ~1% of view hours while driving six of the top ten new-member sign-up days of the past five years, while kids and animation are generating roughly 8x the viewing on an equivalent share of spend. Management also pushed back on recent concerns around declining second-season viewership, pointing out that falloff across the slate has actually improved slightly this year. 1H26 price changes across the US, Mexico, and Spain are tracking in line with prior cycles, and the narrowing ARM gap between the ad-supported and standard plans represents near-term under-realized revenue that improving fill rates and demand should capture over time. Management also emphasized how much growth is still ahead, with Netflix at under 45% household penetration and capturing just ~5% of global TV view share. Shares are under pressure after hours and have been on a steady decline since mid-April; however, we see the fundamental picture as intact, with the content portfolio rapidly broadening, price increases performing to plan, the ads build tracking to expectations, and steady margin expansion. As such, we are leaving our estimates largely unchanged for the full year and beyond and maintain our PT and Buy rating."

For an analyst ratings summary and ratings history on Netflix click here. For more ratings news on Netflix click here.

Shares of Netflix closed at $74.35 yesterday.

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