Morgan Stanley Raises Netflix Price Target To $750 Vs. $670

Morgan Stanley on Friday raised its price target on Netflix Inc. to $750 from $670, which is above the FactSet consensus of $643. Analyst Benjamin Swinburne also set a new bull case for $940--two other analysts have price targets above $900, according to FactSet. Swinburne, who also reiterated his overweight rating, said the price increase is driven mainly by the potential for monthly subscription pricing to reach $14 by 2025, which he said would still be conservative. Swinburne said U.S. subscribers are currently spending 13 cents per hour viewed. A potential increase to $14 per month by 2025 would still see long-term, per hour spending of 13 cents if daily usage grew to 3.5 hours in 2025 as well. Swinburne also expects the company to have launched in all new markets by the end of 2016. Though he excludes China, due to the complexity of entering there, he notes that market along with India represents approximately 250 million broadband homes in 2016. Netflix's current addressable market overseas is 200 million households.