UPDATE: Bank of America Merrill Lynch Lowers PO on Netflix to $285
Bank of America Merrill Lynch is out with its report today on Netflix (NASDAQ: NFLX), lowering its PT to $285 from $335.
In its report, Bank of America Merrill Lynch writes, "Starz just published a press release announcing that they are withdrawing from contract renegotiations with Netflix to extend their content distribution deal beyond Feb 2012 when the current contract ends. Between this event and the the likely impact of pricing on churn this quarter, Netflix's longer term visibility has fallen, so we are taking our PO down to $285 from $335, using the same 35x multiple but shifted back to 2012 estimates ($8.11 in PF EPS)."
Bank of America Merrill Lynch maintains Buy on NFLX.
At the time of posting, shares of NFLX were trading pre-market at $212.07, down 9.09% from Thursday's close.
