Shares of Netflix have fallen so much, Jefferies analysts are no longer bearish, saying they now offer a more favorable valuation at current levels. The shares plunged 23% in morning trade Thursday to trade at a five month low, after the online video streaming service reported disappointing third-quarter results late Wednesday. The stock has now lost nearly 30% from its Sept. 10 all-time closing high of $484.39. Jefferies upgraded the stock to hold, after having an underperform rating on it since April 2013, but slashed its price target to $300 from $350. "While prior concerns over content and competition persist, we think the risk/reward profile looks much more favorable at current levels," Jefferies wrote in a note to clients. The broker believes the price increase, which hasn't yet kicked in for most subscribers, "is a meaningful positive" for Netflix.
Copyright © 2014 MarketWatch, Inc.
Continue Reading Below