Netflix: Morgan Stanley raises target price

(CercleFinance.com) - On Friday, Morgan Stanley raised its target price for Netflix shares from $600 to $700 (cp: $623, -1%), while reiterating its 'overweight' recommendation on the stock.


In a report, the analyst estimates that the US video-on-demand giant could generate average annual EPS growth of 25% through to 2028 - even 30% in the best-case scenario, which he believes would justify a TP of $850.

In his view, the group's international positioning, original productions and vast catalog are all competitive advantages that are currently underestimated by the market.

The broker adds that the group's success in its strategy to end code-sharing could result in further successes in areas such as video games, the introduction of advertising and live sports broadcasts.


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