CFRA analyst Kenneth Leon downgraded Netflix (NFLX) to Hold from Buy with a price target of $100, down from $130. The firm cites the company’s pending acquisition of Warner Bros. Discovery (WBD) for the downgrade. Netflix’s strategy for decades has not involved acquisitions, and Warner’s high debt presents risks, the analyst tells investors in a research note. In addition, CFRA believes the potential for a bidding war with Paramount (PSKY) could force Netflix ‘s debt financing higher.
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