Netflix shares hit a fresh record high on Wednesday as Goldman Sachs revises up price target to a Street-high of $490

Shares of Netflix Inc (NFLX) rose the most in two months during yesterdays trading session after Goldman Sachs raised its price target on the stock to $490 from $390 previously. According to FactSet data, Goldman has now set the highest price target out of the 36 analysts who provide forecasts on Netflix.

Netflix shares closed higher for a third consecutive trading session on NASDAQ on Wednesday. It has also been the sharpest daily surge since April 17th. The stock went up 4.43% ($16.10) to $379.93, after touching an intraday high at $384.25 and also a fresh all-time high.

Shares of Netflix Inc have risen 97.92% so far in 2018 compared with a 3.82% gain for the underlying index, S&P 500 (SPX).

In 2017, Netflix Inc’s stock surged 55.06%, thus, it again outperformed the S&P 500, which registered a 19.42% return.

Goldman also maintained a “Buy” rating on the shares.

“We believe the growing content offering and expanding distribution ecosystem will continue to drive subscriber growth above consensus expectations”, Goldman Sachs analyst Heath Terry wrote in a client note, cited by CNBC.

“Based on the pace of both, were raising our revenue estimates and price target.”

Terry also expects that 32.5 million net subscribers will be added by Netflix in 2019. That compares with a median analyst estimate of 26 million subscribers.

“We believe Netflixs ability to spend significantly more on customer acquisition while still producing ~4pps of operating margin expansion for the full year, on our estimates, will allow the company to drive additional subscriber growth, particularly in markets where the companys brand presence isnt as strong as it is in the U.S.”, the analyst noted.

According to CNN Money, the 40 analysts, offering 12-month forecasts regarding Netflix Inc’s stock price, have a median target of $356.00, with a high estimate of $420.00 and a low estimate of $90.00. The median estimate is a 6.30% decrease compared to the closing price of $379.93 on June 13th.

The same media also reported that 20 out of 43 surveyed investment analysts had rated Netflix Inc’s stock as “Buy”, while 15 – as “Hold”. On the other hand, 3 analysts had recommended selling the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the Netflix stock are presented as follows:

R1 – $381.78
R2 – $383.62
R3 (Range Resistance – Sell) – $385.47
R4 (Long Breakout) – $391.01
R5 (Breakout Target 1) – $397.48
R6 (Breakout Target 2) – $400.95

S1 – $378.08
S2 – $376.24
S3 (Range Support – Buy) – $374.39
S4 (Short Breakout) – $368.85
S5 (Breakout Target 1) – $362.38
S6 (Breakout Target 2) – $358.91

By using the traditional method of calculation, the weekly levels of importance for Netflix Inc (NFLX) are presented as follows:

Central Pivot Point – $361.97
R1 – $368.43
R2 – $376.29
R3 – $382.75
R4 – $389.21

S1 – $354.11
S2 – $347.65
S3 – $339.79
S4 – $331.93