UBS analyst Eric Sheridan downgraded Netflix to Neutral while raising his price target for the shares to $425 from $375. The streaming service closed yesterday up $3.02 to $418.65.

The stock has appreciated 35% since the Q1 earnings report and 117% year-to-date, Sheridan tells investors in a research note partially titled "Hitting Pause on Binge Buying." 

The analyst believes the shares already reflect a 40 times GAAP EBITDA multiple on 2022 estimates. In addition to valuation, Sheridan does not see the "pronounced upside" to Monday's Q2 results relative to prior quarters. He cautions, however, that Netflix "could surprise" with better than expected Q2 results and Q3 outlook.