Morgan Stanley Issues Positive Forecast for Netflix (NASDAQ:NFLX) Stock Price

Key Points

• Morgan Stanley raised its Netflix price target to $115 (from $110) and kept an "overweight" rating, implying roughly a 15.52% upside$115.22.
• Netflix recently beat quarterly expectations (EPS $0.56 vs. $0.55; revenue $12.05B, +17.6% YoY) and analysts point to rising ad revenue (roughly ~$1.5B) and product/monetization expansion as drivers for stronger FY26 EPS growth.
• Potential headwinds include notable insider selling (1.54M shares sold last quarter), regulatory/legal risk in Italy over price‑hike refunds, and a relatively elevated valuation (P/E ~39.4).

Netflix (NASDAQ:NFLX - Get Free Report) had its price objective upped by Morgan Stanley from $110.00 to $115.00 in a research note issued on Thursday,MarketScreener reports. The firm currently has an "overweight" rating on the Internet television network's stock. Morgan Stanley's target price points to a potential upside of 15.52% from the company's previous close.

NFLX has been the topic of several other reports. Cfra raised Netflix from a "hold" rating to a "buy" rating and set a $115.00 target price on the stock in a report on Friday, March 6th. Citic Securities reduced their target price on Netflix from $109.00 to $95.00 and set a "hold" rating on the stock in a report on Monday, January 26th. The Goldman Sachs Group raised Netflix from a "neutral" rating to a "buy" rating and boosted their target price for the stock from $100.00 to $120.00 in a research note on Monday. Citigroup began coverage on Netflix in a research note on Wednesday, March 18th. They issued a "buy" rating and a $115.00 price objective on the stock. Finally, TD Cowen dropped their price target on Netflix from $115.00 to $112.00 and set a "buy" rating on the stock in a research note on Wednesday, January 21st. Two analysts have rated the stock with a Strong Buy rating, thirty-six have given a Buy rating and twelve have issued a Hold rating to the company's stock. According to MarketBeat.com, Netflix has a consensus rating of "Moderate Buy" and a consensus price target of $115.22.

Netflix Trading Up 0.2%

NASDAQ NFLX opened at $99.55 on Thursday. The stock has a market capitalization of $420.30 billion, a price-to-earnings ratio of 39.42, a PEG ratio of 1.50 and a beta of 1.67. The stock's 50 day moving average price is $89.11 and its two-hundred day moving average price is $99.25. The company has a debt-to-equity ratio of 0.51, a quick ratio of 1.19 and a current ratio of 1.19. Netflix has a 52 week low of $75.01 and a 52 week high of $134.12.

Netflix (NASDAQ:NFLX - Get Free Report) last released its earnings results on Tuesday, January 20th. The Internet television network reported $0.56 EPS for the quarter, beating the consensus estimate of $0.55 by $0.01. Netflix had a return on equity of 43.26% and a net margin of 24.30%.The firm had revenue of $12.05 billion for the quarter, compared to analysts' expectations of $11.97 billion. During the same quarter in the previous year, the business posted $0.43 EPS. The business's quarterly revenue was up 17.6% compared to the same quarter last year. Netflix has set its Q1 2026 guidance at 0.760-0.760 EPS. As a group, analysts anticipate that Netflix will post 24.58 earnings per share for the current fiscal year.

Insider Buying and Selling at Netflix

In related news, CFO Spencer Adam Neumann sold 57,260 shares of the firm's stock in a transaction that occurred on Friday, February 27th. The stock was sold at an average price of $95.50, for a total transaction of $5,468,330.00. Following the transaction, the chief financial officer directly owned 73,787 shares in the company, valued at $7,046,658.50. This trade represents a 43.69% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider David A. Hyman sold 23,439 shares of the firm's stock in a transaction that occurred on Friday, January 16th. The stock was sold at an average price of $88.11, for a total value of $2,065,210.29. Following the transaction, the insider owned 316,100 shares in the company, valued at approximately $27,851,571. The trade was a 6.90% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 1,543,023 shares of company stock worth $141,145,842 over the last quarter. Company insiders own 1.37% of the company's stock.

Institutional Trading of Netflix

Several hedge funds have recently bought and sold shares of the stock. Brighton Jones LLC boosted its stake in shares of Netflix by 5.0% in the fourth quarter. Brighton Jones LLC now owns 5,390 shares of the Internet television network's stock worth $4,804,000 after acquiring an additional 257 shares during the period. Revolve Wealth Partners LLC lifted its position in shares of Netflix by 16.4% in the fourth quarter. Revolve Wealth Partners LLC now owns 1,023 shares of the Internet television network's stock worth $912,000 after buying an additional 144 shares in the last quarter. Sivia Capital Partners LLC lifted its position in shares of Netflix by 21.2% in the second quarter. Sivia Capital Partners LLC now owns 1,406 shares of the Internet television network's stock worth $1,883,000 after buying an additional 246 shares in the last quarter. Strategic Investment Advisors MI raised its holdings in shares of Netflix by 18.9% during the 2nd quarter. Strategic Investment Advisors MI now owns 774 shares of the Internet television network's stock worth $1,036,000 after acquiring an additional 123 shares in the last quarter. Finally, Schnieders Capital Management LLC. raised its holdings in shares of Netflix by 12.1% during the 2nd quarter. Schnieders Capital Management LLC. now owns 2,115 shares of the Internet television network's stock worth $2,832,000 after acquiring an additional 228 shares in the last quarter. Institutional investors own 80.93% of the company's stock.

Trending Headlines about Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Walking away from the Warner Bros. Discovery bid removed deal risk and was followed by a sharp rally; reports say ad revenue has roughly doubled to ~$1.5B and analysts now see stronger FY26 EPS growth (~24%), supporting improved margin and cash‑flow outlooks. Why Netflix (NFLX) Stock Surged 30% After Ditching the Warner Bros. Discovery Deal
• Positive Sentiment: Broker support is rising: Oppenheimer reiterated bullish views (citing price‑hike revenue lift) and other firms (Goldman/Jefferies in recent coverage) have pushed price targets higher or upgraded the stock, reinforcing demand from institutional buyers. Oppenheimer Bullish on Netflix (NFLX) Amid Higher Revenue Driven By Price Hikes
• Positive Sentiment: Product and ecosystem expansion (new ad‑free Netflix Playground kids app, sports & dining partnerships) broadens engagement and monetization levers beyond subscriptions and ads, helping diversify growth drivers. What Netflix (NFLX)'s Sports, Dining and Kids Gaming Push Means For Shareholders
• Positive Sentiment: Analysts and research notes highlight improving earnings quality now that the WBD deal is off the table, which reduces a major overhang going into Q1 results. Netflix (NFLX) Heads into Q1 with Stronger Earnings Quality as Deal Risk Fades
• Neutral Sentiment: Erste Group made very small trims to FY2026/27 EPS forecasts (drops of ~$0.01), but maintained a Buy rating — a modest modeling tweak rather than a major revision to the investment case.
• Neutral Sentiment: Macro/tech tailwinds: broader positive forecasts for US tech stocks provide some supportive backdrop for momentum names like NFLX. AMZN, AAPL and NFLX Forecasts – US Tech Stocks Supported So Far
• Negative Sentiment: Regulatory/legal risk in Italy: a court ordered potential refunds to subscribers over repeated price hikes; if upheld on appeal, this could mean meaningful one‑time payouts and negative PR in a key market. Netflix told by court to refund customers over repeated price hikes
• Negative Sentiment: Some recent commentary points to mixed valuation signals and the path to recapturing prior highs remains contingent on execution (subscriber trends, content spend discipline); a few reports note results have occasionally disappointed expectations. Netflix (NFLX) Slid as Results Fell Short of Expectations

Netflix Company Profile

Netflix, Inc NASDAQ: NFLX is a global entertainment company that provides subscription-based streaming of films, television series, documentaries and other video content. Founded in 1997 by Reed Hastings and Marc Randolph and headquartered in Los Gatos, California, the company began as a DVD-by-mail rental service and introduced streaming video in 2007. Netflix later expanded into producing and distributing original programming, beginning notable original hits in the 2010s, and now operates a content production and distribution ecosystem alongside its licensing activity.

The company's primary product is its on-demand streaming service, which can be accessed on a wide range of internet-connected devices and delivered through a suite of apps and web platforms.

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