Goldman just raised its Netflix target to the highest on Wall Street. Here's what's behind the call

The Netflix logo is shown in this illustration photograph in Encinitas, California.
Mike Blake | Reuters

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Netflix's stock price could surge by more than 30% over the next year and is set to report a blowout second quarter, according to a new note from Goldman Sachs.

The bank hiked its price target on the streaming video stock to $670 per share, a new high among major Wall Street analysts. Goldman's previous target price was $540 per share. 

Here's what's behind the call: