Netflix price target raised to $670 from $540 at Goldman Sachs

Goldman Sachs analyst Heath Terry raised the firm's price target on Netflix to $670 from $540 and reiterates a Conviction Buy rating on the shares. The stock closed Thursday up $4.98 to $507.76. The analyst expects Netflix to report Q2 results "well above guidance" with at least 12.5M net subscriber additions. Quarterly app downloads reached a record high and year-over-year downloads growth reached its highest level since Q1 of 2016 during the quarter, Terry tells investors in a pre-earnings research note. The analyst attributes this to content growth on the platform, a lack of competition for entertainment hours and spend driving churn lower, and more time being spent at home during COVID-19. Further, Terry believes consensus estimates for the second half of 2020 and beyond remain too low.