Buy Netflix because subscriber numbers will top the Street next week, Goldman says

Key Points
  • Goldman Sachs predicts Netflix will add 1.7 million domestic subscribers for the first quarter versus the 1.6 million Wall Street consensus.
  • The firm's price target on the company is $170, representing 18 percent upside from Tuesday's close.
Reed Hastings, CEO, Netflix
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Goldman Sachs reiterated its buy rating on Netflix, predicting the online video streaming company's subscriber numbers will be above expectations for the first quarter.

"We expect Netflix to report subscriber additions above its original guidance ... driven by a strong content slate, stable pricing, and maturing international markets," analyst Heath Terry wrote in a note to clients Wednesday. "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."

Netflix will report first-quarter financial results on Monday, according to its website. The company's shares rallied 17 percent this year through Tuesday and are up more than 30 percent in the past 12 months.