NEW YORK (TheStreet) -- Shares of Netflix (NFLX) - Get Report are falling, down 1.8% to $430.52 in pre-market trading Monday, after the company was downgraded to "sell" from "hold" by analysts at Evercore ISI this morning.

The firm also slashed its price target to $380 from $450, citing an intensely competitive environment for the video streaming service.

Evercore ISI analysts said the company will need to increase investments with uncertain returns to stay ahead of the competition.

The firm added, "In the context of increasing competition among existing and emerging distributors, and with content providers becoming better equipped to leverage these newer channels through over-the-top offerings of their own, we view shares as unattractive."

Los Gatos, CA-based Netflix is an Internet television network that allows users to play, pause and resume watching content, with more than 44 million members in 40 countries.

Separately, TheStreet Ratings team rates NETFLIX INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate NETFLIX INC (NFLX) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including premium valuation, weak operating cash flow and relatively poor performance when compared with the S&P 500 during the past year."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

• The revenue growth came in higher than the industry average of 1.8%. Since the same quarter one year prior, revenues rose by 26.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
• The gross profit margin for NETFLIX INC is currently very high, coming in at 83.20%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 5.61% is above that of the industry average.
• NETFLIX INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, NETFLIX INC increased its bottom line by earning $4.32 versus $1.85 in the prior year. For the next year, the market is expecting a contraction of 25.0% in earnings ($3.24 versus $4.32).
• Net operating cash flow has significantly decreased to -$38.46 million or 192.80% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
• You can view the full analysis from the report here: NFLX Ratings Report