UPDATE: Stifel Downgrades Netflix (NFLX) to Hold

(updating comment)

Stifel analyst Scott Devitt downgraded Netflix (NASDAQ: NFLX) from Buy to Hold with a price target of $460.00 (from $440.00).

The analyst comments "The company reported meaningfully higher paid subscriber growth in 1Q as global lockdowns and social distancing measures have accelerated demand for in-home entertainment. Netflix added an impressive 15.8mm paid subscribers in 1Q and the current environment remains positive for near-term subscriber growth. While the timing of a potential return to normalcy remains unknown, we expect some form of trend reversal to materialize as lockdowns are lifted and a portion of recent demand proves to have been pulled forward. At current valuation levels, we see a more balanced risk/reward profile in NFLX shares with limited visibility to 2H numbers as lockdown-related demand may diminish and churn potentially accelerates. We continue to support the long-term story and would revisit our view in the high $300s."

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 $433.83 yesterday.

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