Piper Jaffray Lowers PT on Netflix to $263, Comments on Ending of Qwikster

Piper Jaffray has published a research report on Netflix (NASDAQ: NFLX) after the company announced that it has ended the Qwikster operation before it even began.

In the report, Piper Jaffray writes, "Netflix announced that it will not be requiring DVD and streaming subs to manage two subscriptions and two queues from two different websites. Ending Qwikster before it began is a step in the right direction, in our opinion, but is also likely a sign that the company was concerned that churn among DVD+streaming subs may have had the potential to rise above what was being internally expected. In our view, the Qwikster announcement on 9/19 only added 'insult to injury' for subscribers, following the pricing changes in July."

Piper Jaffray maintains its Overweight rating but has lowered the price target on Netflix from $300 to $263. Netflix closed friday at $117.21 and is currently trading up $8.05 today since market open.