Netflix Just Got A Great Nod From Goldman Sachs

Goldman Sachs has a buy rating on Netflix as well as a price target of $170 on the stock. The firm is maintaining their position and is feeling rather bullish on Netflix’s future.

In a research note on Wednesday morning, analyst Heath Terry told clients that NFLX subscriber additions for Q1 will likely come in above Monday’s guidance number. Terry cites the strength of content sales, pricing stability, and the maturing international markets for his outlook

“We expect Netflix to report subscriber additions above its original guidance … driven by a strong content slate, stable pricing, and maturing international markets,”he wrote in the note.

“While investor expectations have followed NFLX’s share price higher, we expect 1Q results will be further confirmation of the long-term scale and profitability of the platform.”

Terry expects Q1 to add further confirmation of the long-term scale and profitability of the NFLX platform.

Next week on Monday, Netflix will be reporting the company’s first-quarter financial results.

Netflix chief content officer Ted Sarandos also just announced that the company would be investing $6 billion to expand infrastructure in California. According to Sarandos, the company will help improve and upgrade existing studios and sound stages so that it would give an incentive to bring productions back to the state.

Netflix is up more than 30% in the last 12 months.

Disclaimer: We have no position in Netflix, Inc. (NASDAQ: NFLX) and have not been compensated for this article.