Morgan Stanley hiked its rating on Netflix following the streaming giant's stellar earnings report, seeing the shares potentially rising 20% on strong revenue growth.
The Wall Street firm's analyst Benjamin Swinburne upgraded Netflix to overweight from equal weight Thursday, while raising his 12-month price target to $475.
Netflix's subscriber growth was driven by a password-sharing crackdown efforts and interest in its new ad-supported tier.
The analyst's bull case for Netflix in the most optimistic scenario calls for a $550 price target, or 40% upside.
For the bear case, the analyst sees Netflix shares falling as low as $300, or 25% downside.
Persons:
Morgan Stanley, Benjamin Swinburne, Swinburne, Netflix Morgan Stanley, Netflix's, CNBC's Michael Bloom
Organizations:
Netflix
Locations:
U.S