NEW YORK (AP) -- Janney Capital Markets upgraded Netflix on Monday, saying that long-term challenges for the company are still there, but that the share price, near a two-year low, looks good right now.
Netflix still faces only weak competition from other streaming services, like the one started up by Comcast Corp., and studios are unlikely to cut off content to Netflix because they're dependent on the revenue, Wible wrote.
Wible upgraded the stock to "Neutral" from "Sell," but also cut his price target by $3 to $67.
While the slowdown in subscriber growth is a long-term problem, cash flow pressures are easing at Netflix, and Wible believes it can meet its commitments in 2012 without raising more money.
Shares of Netflix Inc. fell 28 cents at $67.58 in electronic trading, part of a broader sell-off in the markets. The shares have lost 78 percent of their value since last year.
