Netflix stock rises after Goldman boosts target to new Street high ahead of earnings

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Shares of Netflix Inc. are up 1.9% in Wednesday morning trading after Goldman Sachs analyst Heath Terry upped his price target on the stock to $670 from $600. The new target is higher than all those listed on FactSet. Terry expects Netflix to deliver better-than-expected third-quarter results when it reports earnings Tuesday. Though the company might see more subscriber churn than usual, Terry anticipates that the company continues to benefit from the fact that people are spending more time at home with limited options for entertainment. “While management is likely to continue to guide conservatively given outperformance earlier in the year and the massive uncertainty of the current environment, we believe consensus estimates for 4Q and beyond remain too low,” he continued. Terry sees room for Netflix to benefit from a “dramatically changing world” as the COVID-19 crisis alters consumer behavior, and he’s upbeat about the company’s potential in early-stage markets. He has a buy rating on the stock, which is on the Goldman Sachs conviction list. The shares have risen 74% so far this year as the S&P 500 has gained 9%.
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