Analyst Issues Caution on Netflix Stock Potential, UBS Likes Altria Shares, Zumiez Up 14%

In the third day of trading action of 2012, the DJIA (NYSEARCA:DIA) trades at 12,382. The S&P 500 (NYSEARCA:SPY) trades at 1,276, and the Nasdaq (NASDAQ:QQQ) trades 2,656. Analysts evaluated the following companies and shared their insights this morning:

Netflix, Inc. (NASDAQ:NFLX): Needham thinks Netflix’s domestic streaming business could become unprofitable. The firm feels content growth costs need to be in line subscriber growth. After management guidance, Needham’s 2012 estimate dropped from $2.50 to 50 cents, while keeping an Underperform rating.

Altria Group Inc. (NYSE:MO): UBS names names Altria Group a top pick in tobacco. UBS thinks Altria shares, with the cheapest valuation in the group, should stabilize in 2012 and increase distributions. The firm has MO Buy rated, increasing target from $30 to $33.

Ancestry.com Inc. (NASDAQ:ACOM): Piper Jaffray’s top mid-cap pick for 2012 is Ancestry.com. Piper feels December quarter results will be reported within previous guidance and Ancestry.com has finalized changes to pricing. The firm reiterates ACOM’s Overweight rating with a target of $47.

Zumiez, Inc. (NASDAQ:ZUMZ): RW Baird raises Zumiez from $30 to $32. A 10 percent increase in December comps and company increased guidance in spite of low snow totals.  The firm sees better near term momentum and rate ZUM Outperform.

To contact the reporter on this story: Jim Wilkerson at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com