Wells Fargo is among the bears that see lower than expected subscriber growth in the third quarter. The firm has slashed its subscriber growth forecast to 2.5 million compared to previous expectations for 5 million additions. Moreover, Wells Fargo has dropped this year’s earnings per share target to $6.13 from the previous estimate of $6.17. Credit Suisse says they don’t see catalysts for share price gains in the short-term as the stock has already priced in pandemic gains. The firm has provided a price target of $525, with a neutral rating. Netflix stock price is currently trading at around $520. Its shares rallied almost 90% in the past twelve months. It experienced the majority of share price gains during the second quarter this year. Netflix stock is currently trading significantly below from 52-weeks high of $570. Meanwhile, Jefferies looks bullish over the pricing power of the streaming company. The firm provided a price target of $570. Jefferies claims that Netflix is set to raise its subscription price in the coming days because of an outsized consumer value proposition and deepening content library. Netflix has generated 25% revenue growth in the latest quarter while earnings per share came in at $1.59. The world’s largest streaming company has added 10 million subscribers in the second quarter after a record 15 million additions in the first quarter this year. The company expects 2.5 million additions for the third quarter this year. The streaming company has indicated that they expect slower growth in the second half this year due to easing social distancing restrictions.
