11:30 AM EDT, 04/09/2026 (MT Newswires) -- Netflix ( NFLX ) is "cleaner" without Warner Bros. and should re-rate back to over 30x multiple, with revenue growth trumping hours, Morgan Stanley said in a note Thursday.

"Netflix ( NFLX ) without Warner Bros. is a cleaner, higher-visibility, and lower-volatility business with more degrees of freedom and lower financial leverage," the report said.

The note said hours watched on Netflix ( NFLX ) are now near 200 billion a year, and the company's quality of engagement is growing with live events and sports delivering outsized value.

Also, price is following value and cash content spend has risen by over 8 times since 2013 to $20 billion, while Standard tier price in the US has increased by about 2.5 times, the note said.

The report said Netflix ( NFLX ) ad revenues can grow to $9 billion to $10 billion by 2030, up from over $3 billion this year, as "ad tier subs reach critical scale and inventory monetization improves."

The report said Sean Diffley assumed lead coverage of Netflix ( NFLX ) with an overweight rating and $115 price target, up from $110.

Price: 99.77, Change: +0.38, Percent Change: +0.38