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Netflix (NASDAQ:NFLX) exceeded all expectations yesterday when it revealed that its subscription base grew by 15.77 million, nearly double the projected growth figure of 7 million subscribers. Well, today the streaming giant appears to be reaping the reward for exceeding consensus expectations as Wall Street collectively jumped on the bullish bandwagon.

Goldman Sachs (NYSE:GS) came up today with one of the most bullish price targets for Netflix, raising the bar to $540 from the previous target of $490. This translates to an upside potential of 24.71 percent from the current price level. Goldman Sachs analyst Heath Terry also maintained a ‘Conviction Buy’ rating for the stock. Crucially, however, Terry believes that Netflix was "overly conservative” while informing investors yesterday that its subscription growth outperformance in Q1 was merely a function of subscribers being pulled forward and that Q2 subscription growth might disappoint as a consequence. Instead, the analyst argues in his fresh investment note that the network effect – one where each new subscriber encourages other acquaintances to join the platform as well – will likely bolster the numbers for Q2.

Echoing this bullish theme, JP Morgan (NYSE:JPM) analyst Doug Anmuth raised the stock price target for Netflix to $535 from the previous bar that the analyst had pegged at $480. This corresponds to an upside potential of 23.27 percent from the current price level (based on yesterday’s closing price). Even though the analyst maintained an ‘Overweight’ rating for the streaming giant’s stock, he did caution that a “more muted” Q2 2020 outlook will likely hold the stock