Morgan Stanley Reverses Netflix Price Target After Just a Day

An Apple Inc. laptop computer displays the home screen for the Netflix Inc. original series 'House of Cards'.

Photographer: Gabby Jones/Bloomberg
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It’s safe to say Morgan Stanley didn’t see Netflix Inc.’s subscriber surge coming.

The bank raised its price estimate for the stock to $475 a share from $450 on Wednesday, after the U.S. streaming giant smashed analyst expectations for new user additions in the third quarter. Just a day earlier, in preparation for Netflix’s quarterly earnings report Tuesday, Morgan Stanley had cut the price target for the first time in three months, to $450 a share from $480.