Goldman Sachs is getting more bullish on Netflix shares even after its stunning gains so far this year.

The firm reiterated its buy rating and increased its price target for Netflix shares to $490 from $390, representing 35 percent upside to Tuesday's close. It is the highest target out of the 36 analysts who cover Netflix, according to FactSet.

"We believe the growing content offering and expanding distribution ecosystem will continue to drive subscriber growth above consensus expectations. Based on the pace of both, we're raising our revenue estimates and price target," analyst Heath Terry wrote in a note to clients Wednesday.