Deutsche Bank initiated Netflix shares at a sell rating, citing full valuation and the prospect of worse-than-expected financial results in the coming years.
"We see the risk/reward on the stock as unattractive," analyst Bryan Kraft wrote in a note to clients Sunday. "This is a very long duration, high multiple investment with market expectations that appear too high through 2020, when most analysts seem to be looking for valuation support. We are skeptical that Netflix will be acquired."
Kraft's picks have a 16 percent one-year average return with a 73 percent success rate, according to analyst ranking service TipRanks, placing him in the top 5 percent of all Wall Street analysts covering any industry.