Amazon (AMZN) Buy Rating Reiterated at Deutsche Bank, Analyst Bullish on Prime
- Springleaf to Acquire OneMain from Citigroup (C) in $4.25B Deal
- Unusual 11 Mid-Day Movers 3/3: (MBLX) (OREX) (MDR) Higher; (OPWR) (PRIM) (CMLS) Lower
- General Motors (GM) U.S. Auto Sales Rose 4.2% in Feb., Missing Expectations
- Ford Motor (F) U.S. Light-Vehicle Sales Fell 2% in Feb.; Est. Up 5.8%
- Orexigen Therapeutics (OREX) Price Target Raised to $26 at Piper
Deutsche Bank reiterated a Buy rating on Amazon.com (NASDAQ: AMZN) with a price target of $400. Analyst Ross Sandler remains bullish on Amazon Prime.
"Prime is arguably the most valuable and important growth trend for Amazon, representing around 50% of company GMV today. At an estimated 32m customers (13% of total, growing at around 45% Y/Y) and high GMV but low contribution margin, the mix shift to Prime is critical to the AMZN investment thesis. Prime’s value to Amazon is simple: 1) it creates a competitive moat around AMZN’s e-commerce business, 2) it drives up loyalty and 3) Prime increases wallet share and captures higher customer LTV," said Sandler.
"We think Prime could reach 100m members in 2020 and alone could be worth over half of AMZN’s market cap. At 18x 2015 EBITDA vs. the historic 3-year average of 21x, we continue to view AMZN’s risk/reward as favorable," he added.
Shares of Amazon.com closed at $358.66 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Actavis (ACT) Price Target Raised to $336 at Deutsche Bank
- Halozyme Therapeutics (HALO) Raised to $19 at Piper Jaffray
- Google (GOOG) Price Target Raised to $670 at UBS
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View
Related EntitiesDeutsche Bank
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!