Morgan Stanley has identified Netflix (NFLX, Financial) as its "top pick" stock, highlighting the streaming giant's resilience against current tariff challenges. The firm anticipates Netflix will show relative strength amid global economic weakness. It has reaffirmed an "overweight" rating with a target price of $1,150, suggesting a potential 22% increase from the recent closing price.
Analysts at Morgan Stanley view the recent dip in Netflix's stock price as a buying opportunity. The company is showing strong momentum in its core subscription business, with members watching nearly two hours of content daily on average. Despite potential setbacks in the advertising market due to trade tensions, this momentum is expected to mitigate overall risks.
Furthermore, Morgan Stanley notes Netflix's operations outside of the United States. The company has previously dealt with rising production costs and streaming taxes, often passing these costs onto consumers. This strategy has helped Netflix maintain its competitive edge globally.
