Netflix price target raised to $820 from $780 at Morgan Stanley

Morgan Stanley analyst Benjamin Swinburne raised the firm’s price target on Netflix to $820 from $780 and keeps an Overweight rating on the shares. Hollywood’s “new normal favors Netflix,” argues the firm, which contends that competition for content is less intense and media company studios are open to license again. The firm sees the ad-tier introduction providing Netflix with another lever to maximize revenues, telling investors that ads “may be more a TAM expander than ARM enhancer.” The firm continues to forecast 4M-4.5M net adds for Q3, which it says is “likely conservative,” and 8M- 9M for Q4.