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.
“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.
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.