With Netflix, Inc. (NASDAQ:NFLX) preparing to release second-quarter earnings on July 18th, Nomura analyst Anthony Diclemente took a closer look at his 3Q16 and 4Q16 estimates. The analyst reiterated a Buy rating on the stock, while reducing the price target to $115 (from $125), which represents a potential upside of 21% from where the stock is currently trading.

Diclemente wrote, “We believe that Netflix’s international launches in 2H15 (Japan in 3Q15 and Southern Europe in 4Q15) may presage difficult YoY growth comparisons for international subscriber addition estimates in 2H16. As such, we modestly lower our international net additions estimates for 3Q16 and for 4Q16. Secondarily, we also revisit our analysis of the revenue benefit from US pricing increases that began in May 2016; we are cognizant, however, that modest subsequent churn may simultaneously prove a modest headwind to 2H16 US net additions.”

“While we maintain our bullish long-term view, given how focused NFLX investors remain on the near-term international subscriber additions trends, we are inclined to modestly lower our Target Price to $115, as we modestly reduce our target valuation multiples on the Netflix international streaming business given more moderate growth assumptions,” the analyst concluded.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Anthony Diclemente has a yearly average return of 7.7% and a 57% success rate. Diclemente has a -3% average return when recommending NFLX, and is ranked #321 out of 3974 analysts.

Out of the 41 analysts polled by TipRanks, 25 rate Netflix stock a Buy, 12 rate the stock a Hold and 4 recommend Sell. With a return potential of 25%, the stock’s consensus target price stands at $119.64.