Jefferies Reiterates Hold, $75 Target on Netflix

Jefferies maintains its Hold rating and $75 price target on Netflix, Inc. NFLX as the company is expected to face potential competition from Verizon VZ in video streaming. Jefferies says, “VZ's standalone streaming service is expected to launch in '12, yet another potential competitor for NFLX. Discussions with content companies could be tricky since content producers don't like to upset lucrative carriage deals with traditional MSOs, but this could be another compelling over-the-top option. The latest entrant could add further pressure on content costs, subscriber acquisition costs, and Netflix' cash cow U.S. business.” NFLX closed at $68.14 per share on Tuesday.