Goldman Sachs Upgrades Netflix (NFLX) to Buy, Sees 50% Upside

Goldman Sachs upgraded Netflix (NASDAQ: NFLX) from Neutral to Buy and raised their price target from $210 to $300, suggesting 50% upside.

With shares down 20% in the last month and trading at 1.0X 2012E PEG "we believe that NFLX shares overreacted to more visible signs of competition, while at the same time, sub momentum has been better than expected, Canada is near 10% penetration in 6 months, and our proprietary survey shows explosive
growth for online video."

In its upgrade the firm cited rapid growth of online video consumption, Netflix now has sufficient scale to make it difficult for new entrants, and competition to date has been underwhelming.

Our 2011-2013 EPS estimates raised to $4.56/$6.72/$8.72, up from $4.52/$6.21/$7.58

For more ratings news on Netflix click here and for the rating history of Netflix click here.

Shares of Netflix closed at $201.20 yesterday.

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