Netflix’s Strategic Position and Growth Potential Justify Buy Rating

Morgan Stanley analyst Benjamin Swinburne has maintained their bullish stance on NFLX stock, giving a Buy rating today.

Benjamin Swinburne has given his Buy rating due to a combination of factors that highlight Netflix’s strong position in the streaming industry. The company has consistently improved its product over nearly two decades, establishing a significant lead in the market. This continuous enhancement, coupled with strategic moves like the recent agreement with TF1 in France, positions Netflix to maximize user engagement and drive long-term growth.
Moreover, the streaming industry is still in a growth phase, representing only about 20% of global TV revenues. Despite some maturation in developed markets, the trend of streaming surpassing traditional cable and broadcast TV is expected to continue globally. This ongoing shift supports the potential for Netflix’s revenue growth and margin expansion, justifying the Buy rating at its current valuation.

Swinburne covers the Communication Services sector, focusing on stocks such as Spotify, Charter Communications, and Netflix. According to TipRanks, Swinburne has an average return of 13.9% and a 60.39% success rate on recommended stocks.

In another report released today, Pivotal Research also maintained a Buy rating on the stock with a $1,600.00 price target.