Netflix Inc (NASDAQ:NFLX) is trading lower Monday following bearish analyst coverage from Jefferies.
Jefferies analyst Andrew Uerkwitz downgraded Netflix from a Buy rating to a Hold rating and lowered the price target from $737 to $415.
Uerkwitz cited subscriber growth concerns and a lack of new revenue opportunities in adjacent markets as reasons for the downgrade.
"We are confident in being in the middle innings of streaming penetration, but now see it taking much longer adding uncertainty," he said. "On the adjacency front, we believe Netflix isn't moving fast enough."
The Jefferies analyst thinks the cost of acquiring the incremental subscriber has "likely become too high."
Uerkwitz acknowledged that he sees a path for Netflix returning to a Buy rating, but the analyst lacks conviction given the amount of near-term uncertainty.
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NFLX Price Action: Netflix has traded as high as $700.98 over a 52-week period. It's making new 52-week lows during Monday's trading session.
The stock was down 9.95% at $357.83 at time of publication.
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