Deutsche Bank Boosts PT on Amazon.com (AMZN) at Margins Expand For First Time Since Early 2012

January 30, 2013 9:13 AM EST Send to a Friend
Get Alerts AMZN Hot Sheet
Price: $287.06 -8.34%

Rating Summary:
    30 Buy, 15 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 24 | Down: 28 | New: 14
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Deutsche Bank raised its price target on Buy-rated Amazon.com (NASDAQ: AMZN) from $305 to $335 following Q4 results and expanding margins. The firm notes this is the first expansion in margins since early 2010.

The firm comments, "Amazon reported gross profit and EBITDA 10% and 31% above our estimates. The key metric we follow to track the progress of AMZN’s business is gross profit ex-fx, which was up 44% Y/Y, accelerating the quarter as the company shifts more units to 3-P and generates more contribution dollars per 1-P and 3-P unit.
Stated another way, AMZN is growing north of 40% and is getting better unit economics. There is some concern about decelerating unit growth, but we think this is a function of AMZN choosing not to chase unprofitable retail units in favor of higher-contribution 3-P. AMZN continues to execute its long term strategy of retail dominance. Shares remain Buy rated."

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 closed at $260.35 yesterday.


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