Nomura Securities Assumes (AMZN) at Buy, $950 PT

September 27, 2016 5:14 PM EDT
Get Alerts AMZN Hot Sheet
Price: $817.88 +1.18%

Rating Summary:
    46 Buy, 5 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 24 | Down: 17 | New: 14
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Nomura Securities assumes coverage on (NASDAQ: AMZN) with a Buy rating and a price target of $950.00.

Analyst Anthony DiClemente commented, "Amazon possesses a dominant leadership position in multiple large and global addressable markets. First, in e-commerce, AMZN is a beneficiary of the secular shift from the $24tn global retail market to the $2tn e-commerce market. We estimate that every 1% of this market could represent ~$15bn/~$0.65 in incremental revenue/EPS to AMZN. AMZN is focused on growth of Prime memberships via investment in continuously improving service; aggressive growth in investment in Prime Instant Video (PIV) is a key piece of this strategy. Finally, AMZN’s leadership in the cloud industry via AWS will afford substantial benefits as the market steadily shifts from the ~$145bn on-premise infrastructure software market to the IaaS/PaaS market. We expect EBITDA, EPS, and FCF to grow at CAGRs of 38%, 100% and 45%, respectively, from 2015A-2020E. This industryleading growth supports our target valuation of 24x 2017E EBITDA and $950 TP. "

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