BWS Financial Maintains 'Sell' Rating on Amazon.com (AMZN), Lowers Estimates

September 29, 2008 7:53 AM EDT

BWS Financial maintains a 'Sell' rating on Amazon.com (Nasdaq: AMZN), lowers estimates.

BWS analyst says, "We have lowered our EPS for 2008 to $1.47 (without the $0.09 gain in the second quarter) and now forecast 2009 EPS to be $2.16. AMZN shares trading at $70 represents a PE ratio of 32.4 times our 2009 estimate, while revenue is projected to grow by less than 19 percent. In recent weeks PE ratios have compressed for the entire market, including AMZN’s. However, we believe there is more room to the downside at AMZN due to the premium in the valuation requiring the Company to post absolutely stellar results. Such an achievement, because of the current economic environment, would be difficult to occur. We are anticipating AMZN to tighten their revenue range for the fourth quarter and for management to highlight their top-line growth objective. Our price target remains $57, but could be lowered if there is evidence AMZN faces a harsh 2009."

Amazon.com, Inc. (Amazon.com) operates retail Websites, which enables its consumer customers to find and discover anything they might want to buy online.

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