Netflix Receives Strong Buy Rating as Morgan Stanley Raises Price Target to $700

Morgan Stanley's Benjamin Swinburne raised their price target on Netflix (NASDAQ: NFLX) by 16.7% from $600 to $700 on April 12, 2024. The analyst maintained their Strong Buy rating on the stock.

Swinburne updated their price target after revising their estimates on Netflix's compound annual EPS growth rate for the fiscal years 2024 to 2028 to 25%. In their analysis, Swinburne stated, "This level of revenue growth at the company's scale supports a premium multiple." The analyst believes that investors are undervaluing Netflix's competitive advantages, including its content from outside the U.S., original shows, and extensive library.

Another analyst, Matt Farrell from Piper Sandler, also provided an update on Netflix on the same date. Farrell increased their price target by 9.1%, raising it from $550 to $600. They maintained their Hold rating on the stock.

According to WallStreetZen, 68.8% of the top-rated analysts currently consider Netflix as a Strong Buy or Buy, while 31.3% rate it as a Hold. No analysts recommend or strongly recommend selling the stock.

The consensus forecast among analysts is that Netflix will deliver earnings per share (EPS) of $15.42 in the upcoming year. If these estimates are accurate, Netflix's next yearly EPS will increase by 25.8% compared to the previous year.

Netflix's stock price has shown significant growth since its last quarterly report on December 31, 2023. It has increased by 27.9% since then and has seen a remarkable year-over-year growth of 88.1%. During this period, Netflix has outperformed the S&P 500, which has risen by 25.2%.

Morgan Stanley's Benjamin Swinburne is ranked in the top 5% of Wall Street analysts by WallStreetZen, with an average return of 12.3% and a win rate of 59.7%. Swinburne specializes in analyzing companies within the Industrials and Consumer Cyclical sectors, among others.

Netflix, Inc. provides entertainment services, offering a wide range of TV series, documentaries, feature films, and mobile games across various genres and languages. The company allows members to stream content on internet-connected devices such as TVs, digital video players, set-top boxes, and mobile devices. Additionally, Netflix provides DVD-by-mail membership services within the United States. With approximately 222 million paid members in 190 countries, Netflix, Inc. has been operating since 1997 and is headquartered in Los Gatos, California.

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WallStreetZen and Don Francis do not hold any positions in the companies mentioned in this article. The information and statistics provided herein are presented for general informational purposes only and may not be accurate, complete, or up-to-date. It should not be interpreted as a recommendation to buy or sell any stocks and should not be solely relied upon for making investment decisions. It does not take into account your financial situation or risk profile. All investors should conduct their own investment due diligence before buying a stock. WallStreetZen expressly disclaims any liability for the accuracy, reliability, or completeness of the analysts' information, price targets, ratings, or opinions.