Shares of Netflix are poised to take a breather in the coming months after rallying nearly 40% from their mid-July lows, according to the CFRA. The company downgraded its streaming service for sale from holding and lowered its price target to $238 from $245. This is slightly below the stock’s closing price on Friday. Given the stock’s performance since mid-July, CFRA found the stock underperformed the S&P 500 index for the rest of the year. Netflix stock is up 38% in that time. “NFLX is no longer a growth stock,” said analyst Kenneth Leon. He also cut the company’s earnings per share and revenue estimates for the second half of the year, citing slowing business activity and free cash flow. “The key catalyst for NFLX – the introduction of new ad-paid subscriptions – may not appear until 2023. This could renew subscriber growth (from 220.7 million on date). 30 June), which was flat and lower in 2022,” he wrote. “NFLX is guiding an additional 1.0 million subscribers in Q3 2022 to 221.6 million subscribers at the end of the quarter.” In addition, Netflix is facing macro inflation and lower discretionary consumer spending going forward, Leon said. — Michael Bloom of CNBC contributed to this report.