Morgan Stanley Upgrades Netflix (NFLX)

NEW YORK (TheStreet) -- Morgan Stanley upgraded Netflix (NFLX) to "equal-weight" from "underweight" Friday, just three weeks since downgrading the streaming video provider.

Shares of Netflix fell 0.3% to $403.53.

Regarding the previous downgrade, analyst Scott Devitt wrote that Netflix "would enter a period of slowing US sub growth before International users could offset the slowdown. We were wrong."

The analyst said expansion into France, Germany, Spain, and Italy may "represent an opportunity nearly the size of the U.S." Ever increasing Internet connection speeds in Latin America can also represent a bg growth opportunity for Netflix according to DeVitt.

The upgrade from Morgan Stanley comes more than a week after Netflix's quarterly earnings report that beat analyst expectations.

TheStreet Ratings team rates NETFLIX INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate NETFLIX INC (NFLX) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

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