Morgan Stanley Bullish on Netflix Growth Outlook; Raises Price Target to $700 on Ad, Games Potential

Morgan Stanley analyst maintains Overweight rating and raises Netflix price target to $700 based on growth opportunities like advertising, games, and live sports.

Paid sharing implementation has added an estimated 10-15 million extra subscribers recently, boosting engagement and revenue.

Morgan Stanley estimates Netflix added 7.5 million net new subscribers in Q1, above previous forecast of 4.5 million.

Analyst points to more "break-out" hit shows in Q1 compared to Q4, supporting his increased subscriber estimates.

Consensus rating among analysts is a Moderate Buy, although average price target of $599 sits slightly below current trading levels.