Nomura Securities Assumes Amazon.com (AMZN) at Buy, $950 PT
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Nomura Securities assumes coverage on Amazon.com (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. "
Shares of Amazon.com closed at $799.16 yesterday.
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