UPDATE: Morgan Stanley Downgrades Netflix Following Correction of Mispricing
In a report published Thursday, Morgan Stanley analyst Scott Devitt downgraded the rating on Netflix (NASDAQ: NFLX) from Overweight to Equal-Weight, and removed the $314.00 price target.
In the report, Morgan Stanley noted, “We believe the fundamental mispricing of NFLX shares that has existed over the past 12 months has fully corrected. At current price levels, it is clear that investors have far greater conviction in Netflix's ability to meaningfully penetrate the 60-90MM domestic household TAM that CEO Reed Hastings sees. Netflix became available to over 6MM broadband households in the Netherlands this week, but its path to international success is still less clear.”
Netflix closed on Wednesday at $308.30.
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