Morgan Stanley Slashes PT on Netflix (NFLX) to $120 From $150, Keeps an Overweight Rating

Netflix, Inc. (NASDAQ:NFLX) is one of the most widely held stocks by hedge funds in 2025. Morgan Stanley slashed the price target on Netflix, Inc. (NASDAQ:NFLX) to $120 from $150 on December 18, maintaining an Overweight rating on the stock. The firm stated that the media and entertainment industry is heading into 2026 with “solid fundamental momentum”.

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The rating update came after Netflix, Inc. (NASDAQ:NFLX) announced on December 17 that it welcomed the recommendation from Warner Bros. Discovery (WBD) Board of Directors for stockholders to reject the unsolicited offer from Paramount Skydance Corporation (PSKY), which was launched on December 8. Management reported that the WBD Board urged stockholders to approve the merger agreement with Netflix after careful review with independent legal and financial advisors, as they believe the offer provides a superior and more certain alternative for WBD stockholders.

Netflix, Inc. (NASDAQ:NFLX) and WBD announced a fully negotiated and financial definitive agreement on December 5 that entailed the acquisition of Warner Bros by Netflix, including HBO, HBO Max, and its television and film studios. The transaction has a total enterprise value of around $82.7 billion, with the cash and stock transaction valued at $27.75 per WBD share. Management further reported that the transaction would offer WBD stockholders incremental value from the previously announced separation of WBD’s Global Linear Networks business, Discovery Global, planned for Q3 2026.

Netflix, Inc. (NASDAQ:NFLX) provides entertainment services through paid memberships in around 190 countries worldwide. It acquires, produces, and licenses content for streaming, including original programming.

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Disclosure: None. This article is originally published at Insider Monkey.