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Takeaways
- Morgan Stanley named Netflix its "top pick" and said a recent pullback in the stock represents a buying opportunity.
- The analysts expect the streaming giant to "demonstrate relative resistance" against the current economic environment.
- Netflix's subscriber base averages nearly two hours of viewing a day per member, Morgan Stanley noted.
Morgan Stanley analysts are now recommending Netflix (NFLX), a streaming giant that they believe is well positioned to weather the current tariff environment.
Morgan Stanley reiterated its “outperform rating” and $1,150 target price for Netflix on Tuesday. Visible Alpha says that the consensus analyst’s target is around $1,099
Morgan Stanley’s target suggests an almost 33% increase in Netflix shares, which are down nearly 7% from their recent trading levels of $854 on Wednesday.[We] The analysts said that they saw the recent pullbacks “as a buying opportunity”.
Netflix Subscriptions Show 'Momentum'
Morgan Stanley stated that Netflix’s core subscription business has “momentum”, and its members watch an average of nearly two hours a day. Morgan Stanley said that the momentum in the core subscription business of Netflix lowers its overall risk even if the advertising industry struggles amid rising tensions.
Morgan Stanley stated that Netflix has operations outside of the U.S. and that the company had to deal with rising production costs and taxation in the past. Analysts say that the company “typically’ passes these increases on to consumers.
Netflix will report its first quarter results on April 17.
