Equities · tmt

Netflix Inc.

We rate Netflix a Hold with a DCF fair value of $55.75, 15.3% below the $65.85 share price. The Q3 2026 results were solid, but the 2026 advertising target was cut to $2.7B and growth outside the US and Canada slowed. Our cash flows assume operating margins reach 35.7% by 2030, below the 38% consensus. We stop short of a Short because the downside rests mainly on our 11.07% discount rate. We will review the rating after the 2027 guidance in January.

Lorenzo Berretti

Co-Head of TMT

10 Nov 2026

With Paolo Buquicchio