Barclays Maintains an 'Overweight' on Netflix (NFLX); Lowers 3Q Domestic Sub Guidance

Barclays maintains an 'Overweight' on Netflix (NASDAQ: NFLX) price target lowered from $285 to $260.

Barclays analyst says, "Netflix announced that it is lowering 3Q11 domestic subscriber guidance, predominantly on the DVD side, as it brought its estimates for domestic DVD subscribers down to 14.2 million from 15 million, and lowered streaming subscriber guidance from 22 million to 21.8 million. As a result, we now project subs to decline Q/Q for the first time since 2Q07."

"As a result, we are lowering our estimates for domestic subscribers from 25.1M to 24.2M for 3Q11, implying y/y growth of 44% and q/q growth of -1%. We now project Netflix to end 2012 with 36.1 million domestic subscribers, +34% and for international subscribers to reach 4 million, +107%." (FY11 EPS estimate cut from $4.35 to $4.17 and FY12 from $6.77 to $6.05)

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

Shares of Netflix closed at $169.25 yesterday.

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