Netflix (NFLX) Gains as Bernstein Squashes Disney Fears

Netflix (NASDAQ: NFLX) shares are gaining early Wednesday following a positive research note from Bernstein analyst Todd Juenger.

Juenger highlights that despite losing Disney in U.S. and Canada, the company will maintain Disney in Netherlands and Australia. More importantly, he said the Disney U.S. non-renewal should have little effect on growth - which will almost all come from international. They forecast an additional 168mm int'l subs and 30mm U.S. subs, by 2030.

The analyst also highlights that recent news flow has made them more bullish. "We believe gaining on-going and future relationships for exclusive content from star creators such as Rhimes/Letterman/Lorre/Kohan, while losing a handful of Disney movies, is a net positive – especially given the fact that when Starz lost Disney output, there was no visible impact on subscribers."

Juenger said the only plausible reason the Disney news has caused such a commotion for Netflix is fears that other Hollywood studios will pull their content as well. He does not see this happening. Even if they did he doesn't think it matters. "It's too late," he said.

The firm maintained an Outperform rating and price target of $203 on NFLX.

For an analyst ratings summary and ratings history on Netflix click here. For more ratings news on Netflix click here.

Shares of Netflix closed at $168.81 yesterday.

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