UPDATE: Goldman Sachs Upgrades Netflix, Notes Continuous Subscriber Growth

In a report released Tuesday, Goldman Sachs analyst Heath P. Terry upgraded Netflix (NASDAQ: NFLX) from Neutral to Buy and has raised the price target from $380 to $590.

Analysts at Goldman Sachs are bullish on Netflix's international growth, predict subscriber growth will continue to surpass projections; margin expansion growth driving content sourcing, technology innovation and customer acquisitions.

Terry said Netflix has been outperforming its sector with a 2015 estimate EBITDA trading at 26X on nearly 50 percent 3-year EBITDA growth compared to the average internet sector trading at 14X with 30 percent growth.