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Barclays Starts Amazon.com (AMZN) at Overweight; The First $1T Market Cap Co.?

March 28, 2017 4:18 PM EDT
Get Alerts AMZN Hot Sheet
Price: $174.48 +0.03%

Rating Summary:
    65 Buy, 5 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 20 | Down: 14 | New: 22
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(Updated - March 28, 2017 4:42 PM EDT)

Barclays initiates coverage on Amazon.com (NASDAQ: AMZN) with a Overweight rating and a price target of $1,120.00.

Analyst Ross Sandler asks: Could Amazon Be the First Company to $1T in Market Cap?

Discussing the bull case, Sandler said AWS is well understood, but is still nascent & could be a $100B revenue business over time. The retail business has a considerable moat, and the Prime flywheel & logistics and automation are just getting going.

The bear case is valuation, as it has been the case since its IPO & has returned 1000x since. Also AWS faces more competition today than ever before & growth rates should decelerate going forward.

Overall he comments, "We rate AMZN Overweight with a $1,120 target based on SOTP on AWS & Retail. AMZN is arguably the best story in the space, with the most open-ended growth opportunity & most highly functional organization. Shares are arguably overowned in the short term following lots of generalist, tech & retail investors adding over the past two years. We expect more volatility in 2017 as expectations around AWS growth & retail profitability likely come down and would consistently add to positions."

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 $846.82 yesterday.



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