UPDATE: Oppenheimer Downgrades Netflix to Perform on Valuation
Oppenheimer lowered its rating on Netflix (NASDAQ: NFLX) from Outperform to Perform and maintained its $80 price target following a significant share price appreciation on Wednesday.
Oppenheimer noted, "We are downgrading NFLX to Perform from Outperform on valuation, following its 14% increase, now near our $80 target, as activist investor Carl Icahn disclosed a 10% ownership position. While we continue to believe NFLX has a strong competitive position, AMZN's future behavior toward subscription video is not predictable and will limit the stock's valuation to 13x US earnings, in our view. Furthermore, our 2013 estimates assume a steady decline in DVD subscribers, which could prove overly aggressive."
Netflix closed at $79.24 on Wednesday.
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