Netflix shares rose
Shares of Netflix (NFLX) rose 8.7% in the week that ended on June 15 to close at $391.98. Netflix shares have generated a return of 158% in the trailing 12 months and 20% in the trailing one month after rising over 55% in 2017.
Netflix stock is trading 172% above its 52-week low of $144.25 and 2% below its 52-week high of $398.86.
Goldman Sachs has a target of $490 for Netflix
Goldman Sachs (GS) analyst Heath Terry stated, “We believe the growing content offering and expanding distribution ecosystem will continue to drive subscriber growth above consensus expectations.” Terry reiterated a “buy” rating on Netflix and raised the stock’s price target to $490 from $390, a 33% increase from its current price.
According to Goldman Sachs, Netflix could add 32.5 million net subscribers in 2019, 25% higher than industry estimates of 26 million subscribers. Terry expects Netflix to have the ability to increase spending on customer acquisitions and to expand its operating margin in 2018 and beyond.
As we’ve learned, AT&T (T) will be acquiring Time Warner, and Comcast is looking to acquire 21st Century Fox (FOXA), suggesting that Netflix will be competing with tech giants as well as with current streaming giants such as Amazon Prime (AMZN) and YouTube (GOOG) in this space.