On Friday, Morgan Stanley raised its price target for Netflix from $600 to $700, while reiterating its 'overweight' recommendation on the stock.

In a research note, the analyst estimates that the American video-on-demand giant could generate average annual earnings per share (EPS) growth of 25% between now and 2028, or even 30% in the best-case scenario, which he believes would justify a target of $850.

In his view, the group's international positioning, original productions and vast catalog are all competitive advantages that are currently underestimated by the market.

The intermediary adds that the group's success in its strategy to end code-sharing could augur further successes in areas such as video games, the introduction of advertising or live sports broadcasts.

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