Netflix, Inc. (NASDAQ: NFLX) shares jumped after Goldman Sachs raised its price target for Netflix shares, predicting better-than-expected subscriber gains.
According to CNBC, analyst Heath Terry wrote in a note to clients Tuesday: "We continue to believe that Netflix is likely to report 1Q results above consensus expectations on the back of a strong content slate, newer distribution partnerships, and the initial impact of marketing investments."
The analysts raised its price target for Netflix stock to $360 from $315. It represents a 20 percent upside on Netflix’s Tuesday’s close price. The firm also reaffirmed its buy rating for Netflix.
Netflix shares rose 3.5 percent to 309 in the early trading on Wednesday. Including today’s gains, the stock was up more than 60 percent this year.
"Beyond the quarter, we continue to believe long term subscriber growth and profitability will exceed current consensus expectations as Netflix realizes the global scale benefits that come from its subscriber base, distribution network and content library," he wrote, according to CNBC.
Terry predicts Netflix will add 7.3 million new subscribers in the first quarter, 1.7 million from domestic and 5.6 million from international. Both figures beat consensus expectations. For the full year, He predicted the company to add 21.8 million international subscribers.