Nomura Securities Maintains Bullish Stance on Amazon.com (AMZN) Post Q1

April 26, 2013 8:27 AM EDT Send to a Friend
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Nomura Securities analyst Aram Rubinson reiterated a Buy rating and $315 price target on Amazon.com (NASDAQ: AMZN) following Q1 results after the close.

Rubinson said, "The Law of Large Numbers suggests that results obtained from a large number of trials should approximate the expected value. Amazon’s 1Q revenue growth rate held steady at +22% – the same growth rate observed in Q4 12. What is more, guidance for Q2‘13 revenue growth is the same as 1Q guidance was. This new element of predictability is good in that it reduces volatility.

He continued, "We expect a $10B increase in physical GMV at Amazon this year with similar increases seen in 2014 and 2015. By comparison, Costco is expected to add $8.5B in GMV this year; Apple and Wal-Mart are expected to add $20B and $30B. The bigger issue is for AMZN to merit share gains. We are less concerned with execution."

The lowered FY 2013 EPS estimate from $1.67 to $1.57 and raised FY 2014 EPS estimate from $3.44 to $3.61.

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 $274.70 yesterday.


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