Merriman Maintains Neutral on Netflix

Merriman is out with its report today on Netflix NFLX, maintaining Neutral. In its report, Merriman writes, "While we continue to believe Netflix management continues to make the right decisions to secure long-term growth opportunities by expanding beyond the domestic market, we remain concerned that we have entered a prolonged period of difficult earnings headwinds coupled with an uncertain competitive environment - both of which could restrain valuation multiple expansion. We are maintaining our Neutral rating and valuation target range of $220-240 based on 35-40x our CY12 EPS estimate." At the time of posting, shares of NFLX were trading pre-market at $210.75, down 9.57% from Thursday's close.