Amazon.com (AMZN) Retail Margins Could Increase 44%, Raising PT to $1015 - Evercore ISI
- Wall St. stock futures fall after Italy referendum
- Oil tops $55 for first time in 16 months as OPEC deal fuels buying
- Consolidated Communications (CNSL) to Acquire FairPoint Communications (FRP) in $1.5B Deal
- Burberry rejects multiple takeover offers from Coach: Financial Times
- Trump picks ex-rival Carson to head housing department
Get the Pulse of the Market with StreetInsider.com's Pulse Picks. Get your Free Trial here.
Evercore ISI analyst, Ken Sena, reiterated his Buy rating on shares of Amazon.com (NASDAQ: AMZN) and believes that automating a variety of aspects of its retail business through Cloud automation, machine learning and artificial intelligence could save the company " up to 80% per unit". This leads to the view that the view that Fulfillment by Amazon will provide less of a P&L margin drag than previously estimated spurring the analyst to raise raise his price target to $1,015 from $930.
Under a hypothetical automation cost analysis of Amazon’s Retail P&L, the analyst sees "6% in potential cost reduction, which over the course of five years would suggest CSOI margins 44%, which could place them in the 17% range".
Shares of Amazon.com closed at $769.69 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Credit Suisse Upgrades National Beverage (FIZZ) to Outperform
- MKM Partners Upgrades Choice Hotels (CHH) to Neutral
- Jefferies Raises Price Target on US Physical Therapy (USPH) to $63 Following 12-Clinic Acquisition
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change
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!