Bernstein seems to be talking up and talking down Netflix (NFLX -0.2%) in the same note today.
The firm backs its Outperform rating on Netflix and price target of $450, but lays out a scenario where shares fall sharply.
The Q2 miss, coupled with the upcoming Disney+ launch in the US (and Apple as well, and more to come), has come together to make investors reevaluate their confidence in Netflix’s subs and pricing growth, writes analyst Todd Juenger.
Juenger sees a floor price of $230 on Netflix, which is 21% below the current share price and a tad lower than the 52-week low of $231.23. In the end, he thinks Netflix's vast content library will give it a pricing edge and keep its subscriber growth strong.