Sell Netflix on Amazon competition, Jefferies says

Netflix on a laptop screen
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Jefferies reiterated its underperform rating on Netflix due to a rising competitive threat from Amazon and increasing price sensitivity among the company's subscribers.

Old Netflix subscribers face a $2-per-month price rise this year after the grace period from 2014's price increase ends.

"Our proprietary survey targeted more than 1,100 subscribers that have received the un-grandfathering/price change notification from Netflix," analyst John Janedis wrote in a note to clients Friday.

"The results suggest that the price point could have a larger impact on cancellations & that AMZN Prime's video platform is gaining share."

He lowered his Netflix price target to $76 from $80, representing 21 percent downside from Thursday's close. He has one of the seven sell ratings out of the 37 analysts who cover the stock on Wall Street.