Goldman Sachs Suggests Buying Calls on Netflix, Inc. (NFLX)

Goldman Sachs is out with a research note this morning, where it suggests that traders buy calls on Netflix, Inc. NFLX to position for a rebound in growth expectations.

Goldman Sachs internet analyst, Ingrid Chung, recently upgraded NFLX to Buy and sees 38% upside to her 6-month Price Target of $300. She believes NFLX is benefiting from strong growth in on-line video, driven by the penetration of connected devices.

She also points to a data point from the GS Internet Usage Survey, which shows that 27% of US consumers are now streaming TV/movies (up from 16% last year) as supportive of the idea that we are approaching a key inflection point in NFLX's subscriber momentum.

Goldman suggests buying the September $245 call for $21.00

Netflix, Inc. is a subscription service streaming movies and television episodes over the Internet and sending digital versatile discs by mail to more than 12 million subscribers. The company's subscribers can watch unlimited movies and television episodes streamed to their televisions and computers, and can receive DVDs delivered to their homes.