Amazon.com (AMZN) Retail Margins Could Increase 44%, Raising PT to $1015 - Evercore ISI
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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.
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