In a research note to investors, Stifel analyst Scott Devitt downgraded Netflix (NFLX) to Hold arguing that while he is attracted to the company’s business and competitive position, its share price may have “sprinted ahead of fundamentals” in the short-term. Yesterday, Pivotal Research analyst Jeffrey Wlodarczak raised his price target on the shares to $400 as he increased his forecasts for Netflix’s international subscribers and domestic average revenue per user. MOVING TO THE SIDELINES ON VALUATION: Stifel’s Devitt downgraded Netflix to Hold from Buy, while raising his price target for the shares to $325 from $283. The analyst told investors that he remains attracted to Netflix’s business and competitive position, but believes the share price may have “sprinted ahead of fundamentals” in the short-term. The recent move comes as the streaming service handily topped expectation in the fourth quarter, with a record 8.33M quarterly subscriber additions globally, driven by broad-based outperformance across the globe, he noted. Devitt also added that the company’s momentum leads him to expect Netflix to add about 25.98M net subscribers in 2018, while pointing out that he raised his 2018 and long-term international subscriber estimates based on outperformance in the fourth quarter and a long runway for potential subscribers globally. HIGHER INTERNATIONAL SUBSCRIBER FORECAST: In a research note of his own yesterday, Pivotal Research’s Wlodarczak raised his price target for Netflix to $400 from $300 as he tweaked his long-term international subscriber forecasts higher to 250M by 2024 and raised his long-term U.S. average revenue per user, or ARPU, expectations to $16 in 2024 on Netflix’s demonstrated pricing power. Notably, he also reduced his 2024 international ARPU to $12.50 to better reflect future subscribers from lower ARPU generating countries. Wlodarczak reiterated a Buy rating on the shares. PRICE ACTION: In morning trading, shares of Netflix have dropped about 2% to $318.76.