Netflix's (NFLX) business is predictable as measured in quarters and is "relatively" resilient in a tougher macro, Morgan Stanley said in a note Monday.

The investment bank noted that the company's Q1 revenue and Q2 revenue outlook were "modestly ahead" of consensus.

Morgan Stanley added that the company is tracking above the mid-point of its full-year guidance of reported revenue growth of 12% to 14% as foreign exchange is currently a tailwind.

The Wall Street firm raised its Netflix EPS forecasts by 2% to 3% on average compared with prior published estimates over the next three years.

Morgan Stanley also raised its price target on Netflix to $1,200 from $1,150 and maintained its overweight rating.

Netflix shares were up 1.7% in recent Monday trading.

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