Needham Advises Buying Netflix (NFLX) Weakness Despite $275M Regulatory Costs

Netflix Inc. (NASDAQ:NFLX) is one of the best US stocks to buy and hold in 2026. On January 21, Needham lowered the price target on Netflix to $120 from $150 but maintained a Buy rating. Following Q4 2025 results, the firm noted that the company’s 2026 guidance is distracted by $275 million in projected legal and regulatory expenses, which are expected to dampen margins and free cash flow. Still, Needham recommends buying on weakness due to a robust 2026 content lineup and improved retention among its 325 million global subscribers (23 million year-over-year increase).

On the same day, Deutsche Bank updated the outlook on Netflix Inc. (NASDAQ:NFLX) following its Q4 2025 earnings report. The price target for the shares was raised to $98 from $95 with a Hold rating. The firm described the company’s Q4 results as strong but clarified that the operating income outlook is currently being impacted by costs related to a deal with Warner Bros.

Earlier on January 16, KeyBanc lowered its target to $110 from $139 while keeping an Overweight rating. This adjustment reflected concerns that the uncertainty regarding the Warner Bros. Discovery deal could negatively impact the stock’s price-to-earnings multiple in the short term.

Netflix Inc. (NASDAQ:NFLX) provides entertainment services worldwide. The company offers TV series, documentaries, feature films, games, and live programming across various genres and languages.

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Disclosure: None. This article is originally published at Insider Monkey.