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Goldman Sachs Reiterates a 'Buy' on Amazon.com (AMZN); Expect Continued Strong Improvement Into '13

July 27, 2012 9:52 AM EDT Send to a Friend
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Price: $316.08 +0.05%

Rating Summary:
    32 Buy, 10 Hold, 1 Sell

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    Up: 32 | Down: 12 | New: 29
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Goldman Sachs reiterates a 'Buy' on Amazon.com (NASDAQ: AMZN) price target of $280.00.

Analyst, Heather Bellini, said, "With our view that consensus CSOI margins will gradually migrate closer to our number and margin improvement having been a positive catalyst for the stock in the past...We continue to believe that Amazon’s CSOI margins will bottom in 2012 and show yoy improvement in 2013. We expect this will be driven by an increasing percentage of 3rd party units coupled with a higher percentage of higher margin digital media sales as well as a fast growing base of services revenue where we estimate incremental gross margins are near 100%. We are forecasting CSOI margins will rise 120bps in 2013 to 3.7%, versus consensus of 3.1%."

FY13 EPS estimate lowered from $2.58 to $2.53, maintains FY14 at $5.32.

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 $220.01 yesterday.




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