Morgan Stanley believes that Netflix's risks could be skewed to the downside

Morgan Stanley analysts have established a neutral rating on Netflix shares and determined the fair value per share at $230.

However, caution is still maintained regarding the company's shares, due to the existing risks, which may be assessed improperly. Such risks include, for example, market saturation, increasing competition and slowing global consumption. At the same time, an increase in revenue generated from the ad-tier opportunity can already be reflected.

According to analysts, Netflix is still the obvious leader in the streaming market. Nevertheless, the company's business is still developing, being in a market with very high competition and facing a global consumer in conditions of increasing economic tension. “While we consider the ad-supported tier as a way to expand our total addressable market (TAM), and paid sharing as an opportunity to increase an average revenue per user (ARPU), we are not sure that these actions can provide significant potential for growth in expectations,” the analysts said in a statement.