Goldman Sachs Still Bullish On Netflix (NFLX) Despite Q2/Q3 Weakness

Goldman Sachs reiterated its Buy and $330 price target on Netflix (NASDAQ: NFLX) following Q2 results, which included subscriber guidance below their estimates and the consensus and weak Q3 guidance due to the pricing changes.

The firm is sticking with their Buy rating saying that the company is still in the early innings of an international growth story. Goldman believes the company's Q3 net global adds of 740K is being conservative. In addition, management expects at least half of the sub base to be high margin. Also, management indicated that Q4 revenues would be their first $1 billion quarter and above Goldman's prior estimates of $866 million.

Goldman raised 2011-2013 EPS estimates 11%-12% to $5.12/$7.69/$10.80 due to 2Q flow through and the pricing increase, slightly offset by higher sub churn in 3Q2011.

For more ratings news on Netflix click here and for the rating history of Netflix click here.

Shares of Netflix closed at $276.58 yesterday.

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