NEW YORK (TheStreet) -- Netflix (NFLX) shares are up 2.6% to $441.49 after analysts at Morgan Stanley (MS) assumed coverage on the stock with an "overweight" rating and a $500 price target.
Analyst Benjamin Swinburne said that he is bullish on the company's domestic prospects and that the company has solid visibility on its future margin expansion.
Swinburne also sees the company's international market strengthening, with potential customers in the U.K. and Canada pushing the streaming service's total addressable market to 280 million people by 2020.
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Separately, TheStreet Ratings team rates NETFLIX INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate NETFLIX INC (NFLX) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet."