Brokers: Netflix downgraded as it snaps five-day win streak

Jefferies says that the online film and TV platform has lost its first mover advantage, while RBC Capital Markets turns bearish on brewer Anheuser-Busch

an iPhone with the Netflix app open and headphones plugged in
Netflix had been on a good run until today

Netflix, Inc (NASDAQ:NFLX) has been downgraded to an ‘underperform’ rating from ‘hold’ by Jefferies International, while the bank also cut its price target for the stock to US$80 from US$120.

The stock has been on the rise for five days but Jefferies expects flatter subscriber growth in the US which will likely put pressure on the North American arm of the business.

The bank added that Netflix seems to be losing its first mover advantage, with the likes of Amazon Prime emerging as serious competitors.

RBC Capital Markets has turned bearish on brewing firm Anheuser-Busch InBev SA (NYSE:BUD), downgrading its rating for the company to ‘underperform’ from ‘sector perform’.

The Canadian bank cited concerns with the SABMiller PLC (LON:SAB) acquisition as it believes that all the benefits from the deal will be realised by SABMiller shareholders, not Anheuser-Busch’s.

“While we expect it to do its normal awesome job in extracting synergies from SABMiller, we do not expect significant margin accretion over and above that, as we don't believe [Anheuser-Busch's] competitive position will have been materially enhanced,” it said in a note today.

Tesla Motors Inc (NASDAQ:TSLA) has had its price target trimmed by Pacific Crest to US$190 from US$212.

The cut comes after Tesla announced that it had missed delivery targets last quarter, while it also emerged last week that the National Highway Safety Administration is investigating a fatal accident involving one of its cars.

Deutsche Bank has moved Juniper Networks (NYSE:JNPR) down to a ‘hold’ recommendation from ‘buy’, commenting that it expects the networking equipment maker’s profit margins to come under pressure, particularly in its routing business.

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