Barclays Trims Estimates and Target on Amazon.com (AMZN) on Lower Kindle Fire Expectations
AMZN Hot Sheet
Rating Summary:21 Buy, 11 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 19 | Down: 16 | New: 82
Shares of Amazon.com (NASDAQ: AMZN) are lower today after analysts at Barclays
lowered Kindle estimates and their price target to $180.
Based on recent data and checks, the firm said their 5.5 million Q411 Kindle Fire estimate was too aggressive, and they now believe the company sold closer to 5M units. In 2012, we now believe AMZN will sell 17.1M Tablets and 18.4M Kindle eReaders down from 18.4M Tablets and 23.8M eReaders.
"Our lower Tablet numbers reflect our belief that AMZN may not introduce a new 7" Kindle Fire Tablet or 8.9" Tablet until 2H12 (versus prior 1H12 estimate), and market pricing dynamics will get more competitive given the recently-introduced $199 8GB NOOK tablet," the firm said.
The firm maintained their Equal Weight rating on Amazon. The firm said Amazon has the strongest long-term secular growth runway in the space, although shorter term they are more cautious due to headline risk and a relative lack of positive catalysts prior to 2H11.
Barclays' new FCF/share estimates on AMZN is $7.28, down from $7.57.
For an analyst ratings summary and ratings history on Amazon.com click here. For more ratings news on Amazon.com click here.
Shares of Amazon.com last traded at $179.70, down 0.5 percent.
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lowered Kindle estimates and their price target to $180.
Based on recent data and checks, the firm said their 5.5 million Q411 Kindle Fire estimate was too aggressive, and they now believe the company sold closer to 5M units. In 2012, we now believe AMZN will sell 17.1M Tablets and 18.4M Kindle eReaders down from 18.4M Tablets and 23.8M eReaders.
"Our lower Tablet numbers reflect our belief that AMZN may not introduce a new 7" Kindle Fire Tablet or 8.9" Tablet until 2H12 (versus prior 1H12 estimate), and market pricing dynamics will get more competitive given the recently-introduced $199 8GB NOOK tablet," the firm said.
The firm maintained their Equal Weight rating on Amazon. The firm said Amazon has the strongest long-term secular growth runway in the space, although shorter term they are more cautious due to headline risk and a relative lack of positive catalysts prior to 2H11.
Barclays' new FCF/share estimates on AMZN is $7.28, down from $7.57.
For an analyst ratings summary and ratings history on Amazon.com click here. For more ratings news on Amazon.com click here.
Shares of Amazon.com last traded at $179.70, down 0.5 percent.
Discover Wall Street's best ratings calls with the pros - Ratings Insider Elite. Free Trial!
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Analytical basis questioned.
Geek on Feb 23, 2012 06:26 PMMark as Spam
A decrease in demand for the Kindle Fire has less meaning than overall sales forecasts, since the Fire is nothing more than an additional vessel for ordering Amazon content.