UPDATEL Goldman Sachs Lowers Price Target on Netflix to $270

According to Goldman Sachs, Netflix NFLX price target is lowered to $270. Goldman Sachs said that Netflix lowered its 3Q2011 domestic subs guidance by 1.0 mn to 24.0 mn, attributing 800K of the reduction to DVD-only subs and the balance to streaming-only. “We lower our 6-month, DCF-derived target price (supported by multiples) to $270, from $330 due to lower estimates and multiple. At its $155 current price, NFLX trades at 11X 2012E EBITDA/0.8X PEG vs Internet peers at 11X/1.0X.” Netflix closed on Friday at $155.19.