12:13 PM EDT, 10/10/2024 (MT Newswires) -- Netflix ( NFLX ) is expected to benefit from a long runway for revenue growth and a deepening competitive moat, Morgan Stanley said in a report Thursday.

The report also pointed to above consensus expectations for operating leverage and EPS.

"Our analysis of Netflix ( NFLX ) new 1H24 engagement report reinforces our bullish view," Morgan Stanley said, adding that the latest engagement report is backing the "Netflix ( NFLX ) content advantage," referring to its original programming, international content, and the value of its content library.

Following "peak TV" and recent strikes, Hollywood's new normal favors Netflix ( NFLX ), with reduced competition for content and media studios open to licensing again, the report said. It said the ad-tier introduction would also help raise revenue.

Morgan Stanley raised its price target for the stock to $820 from $780 while reiterating its overweight rating.

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