Jefferies Slashes Price Target on Netflix (NFLX), US Sub Growth Stalls

Jefferies slashed its price target on Hold-rated Netflix (NASDAQ: NFLX) from $190 to $90 following weak Q3 results and Q4 guidance after the clsoe.

The firm notes the guidance reflects stalled domestic sub growth, heavy investments that will yield losses for much of 2012, burgeoning content costs 2012/2011.

The firm comments, "While the stock is starting to look attractive, the melting ice cube nature of the DVD business, the early stage of growth for international expansion and growing threats from TV Everywhere, AMZN, DISH and Hulu keep us on the sidelines."

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

Shares of Netflix closed at $118.84 yesterday.

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