(Updated - July 12, 2018 6:29 AM EDT)

(updated to add analyst comments)

UBS downgraded Netflix (NASDAQ: NFLX) from Buy to Neutral with a price target of $425 (from $375).

Analyst Eric Sheridan notes the stock is up 35% since Q1 EPS, versus +4% for the S&P. Sheridan said based on their reverse DCF to analyze what's priced in, they think that NFLX stock now already reflects paying a ~40x GAAP EBITDA in '22 (ests over 5 years of 15%+ sub growth, 7% ARPU growth, and 2,000bps EBITDA margin expansion).

In addition to valuation, they don’t see the pronounced upside to Q2 results vs. prior quarters (& driven the stock up 117% YTD).

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 $415.63 yesterday.