UBS Maintains a 'Neutral' on Netflix (NFLX); Concurrent Financing Deals Support NFLX Content Acquisition Strategy

UBS maintains a 'Neutral' on Netflix (NASDAQ: NFLX) price target cut from $82 to $75.

UBS analyst says, "$400MM of Financing Makes “Doubling” Content Costs in 2012 Possible: Yesterday, NFLX priced concurrently a $200MM stock offering (to certain T. Rowe mutual funds) and a $200MM Zero-Coupon Senior Convertible Notes offering (to funds affiliated with Technology Crossover Ventures). The stock offering priced at $70 / share for ~ 2.86MM shares. The notes have a conversion price of $85.80 / share, subject to adjustment upon occurrence of certain events."

UBS lowers FY11 EPS estimate from $4.04 to $3.84 and FY12 from $2.51 to $0.30.

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 $74.47 yesterday.

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