S&P Maintains its HOLD Rating on Netflix, Target Price Reduced

October 11 00:00 2011

NEW YORK, October 11 (RainbowNewsLine.com) – Analyst Aaron Siegel of S&P Equity Research maintains his HOLD rating on Netflix (NASDAQ: NFLX). The target price has been reduced from $210 to $160.

Analyst Aaron Siegel of S&P Equity Research, in a research note published yesterday, mentions that Netflix has abandoned its plan of splitting DVD business from its mainline operations. Following this, the company has decided to resume its services under one site and name. The analyst believes that parting the DVD business and naming it Qwickster might have created retaliation from disappointed customers. As a result, the analyst appreciates the move made by the company.  The recent negative publicity that Netflix received may cause short-term decline in subscriber growth rate, the analyst adds. The analyst, however, expresses his concern regarding the inflating cost of content acquisition by NFLX.