Jefferies Analyst John Janedis has downgraded Netflix, Inc. (NASDAQ:NFLX) from Hold to Underperform with a price target of $80.00.

The analyst believes that Netflix’s domestic subscriber trajectory may be flatter than current market expectations. He believes that international subscriber growth will remain healthy but concedes that slowing U.S demand for Netflix’s services will be detrimental to the stock’s multiple.

According to the analyst, an accelerated rate of cancellations for the service is cause for alarm, especially in the wake of the Brexit. In addition, the EU proposed legislation that would essentially force Netflix to finance European-made films. The legislation, if imposed, would cause higher costs for Netflix with a dramatic decrease in return on invested capital.

According to TipRanks, John Janedis is a 4-star analyst with a 53% success rate recommending stocks and an average annaul return of 7.6%