Mahaney, with a $500 price target and an "outperform" rating on the stock, said the service Netflix provides would remain relatively inexpensive even after the proposed price increase.
"I know you're going to be talking about McDonald's later, but I've been saying for a while I think that the Netflix subscription package of $7.99, even $8.99, is the second-best value in America after the Happy Meal," he said. "I mean, come on, you get unlimited content for 8 bucks a month, a lot of original content you can't find anywhere else. And we've seen rising satisfaction levels for Netflix subs."
Mahaney said he had commissioned surveys that found 64 percent of current Netflix subscribers wouldn't likely cancel because of a price increase, while 16 percent would likely cancel.
Tackling the issue of Netflix stock's valuation, around 24 times EBITDA, Mahaney said that there was a more accurate way to view it.
Read More Netflix tops earnings expectations, raises prices for new members
"This company's profits are currently extremely depressed by all their international investments. You have to take those out, or you have to kind of take a sum-of-the-parts approach," he said. "How much do you want to pay for the U.S. business and then the international business? That EBITDA can almost double overnight. All you have to do is shut down all their loss-making international operations. We don't think that'd be a good move for the company's long-term value."
Mahaney added that the market was "fundamentally underappreciating" Netflix's profit profile, "and that's why we're bullish on this company."
Disclosure: RBC Capital Markets has no position in Netflix stock.
—By CNBC's Bruno J. Navarro. Follow him on Twitter @Bruno_J_Navarro.