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NEW YORK (TheStreet) -- Netflix (NFLX) was initiated with a 'sell' rating and $80 price target at Axiom on Monday morning. 

The firm's bearish outlook on the video streaming service comes as the bull case on the stock is "starting to fray," Axiom senior analyst Victor Anthony said on CNBC's "Halftime Report" this afternoon. 

While competition has been a constant concern in the past several years, now that concern is "real," according to Anthony. Netflix faces tough competition from Hulu and's (AMZN) video platforms, and several other competitors will launch services soon. 

Increased competition has affected domestic subscriber growth, which has been "sharply" declining for the past several quarters, Anthony said. "The competition is now real. It's starting to impact subscriber growth," he added. 

Meanwhile, the firm has received feedback from international markets that want Netflix to produce more original local content, he said. This pressure to spend more on content could affect the company's profitability. 

The firm's that are bullish on the stock are looking at the overall "growth story" of Internet television and at Netflix's high-quality original content, Anthony explained. 

While both of those upsides may be true, competitive pressure going forward will continue to weigh on subscriber growth, increase churn, and increase pressure to spend money on additional original content, he explained.

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Shares of Netflix were higher in mid-afternoon trading on Monday. 

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings team rates Netflix as a Hold with a ratings score of C+. The primary factors that have impacted the team's 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.

You can view the full analysis from the report here: NFLX

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