Netflix's (NFLX) business is expected to be relatively resilient in a challenging economic backdrop, according to Morgan Stanley, which forecasts the streaming giant to record higher revenue for 2025 than previously estimated.

The company reported its first-quarter results last week, with membership growth and price increases helping lift overall revenue above market expectations. It outlined a second-quarter revenue outlook of $11.04 billion, above Wall Street's estimates at the time, and maintained its full-year sales guidance at $43.5 billion to $44.5 billion.

Netflix is tracking above the mid-point of its full-year guide, Morgan Stanley said in a client note emailed Monday. With foreign exchange now seen as a tailwind, the investment bank estimates the streaming company to report revenue of $44.45 billion for the current year, up from its previous forecast of $44.3 billion. The consensus on FactSet is for sales of $44.42 billion.

In a shareholder letter last week, the streamer said its full-year revenue outlook reflected healthy member growth, higher subscription pricing and a "rough doubling" of advertising revenue. Morgan Stanley estimates ad revenue to cross $5 billion by 2028 from an estimated $700 million in 2024.

The investment bank said that "2025 is an important year for advertising monetization as Netflix moves from largely leveraging third parties to rolling out its own first-party advertising suite of products."

Netflix said Thursday that it increased prices in France, having recently made pricing adjustments in markets such US, the UK and Argentina.

"These increases are not driving a churn response above historical norms and remain highly revenue and profit accretive," the brokerage said. "This is encouraging in the context of rising anxiety over consumer spending."

Oppenheimer said last week that Netflix has no trade exposure and could even benefit from a potential economic downturn, when consumers tend to stay home more often.

Morgan Stanley maintained its overweight rating on Netflix's stock and lifted the price target to $1,200 from $1,150.

The brokerage expects Netflix to achieve a compound annual growth rate of more than 20% to 25% in per-share adjusted earnings over the next four years through margin expansion and double-digit revenue gains.