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Amazon (AMZN) Price Target Raised to $400 at Piper Jaffray on Long-Term Potential

November 28, 2014 7:18 AM EST
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Price: $180.27 +0.24%

Rating Summary:
    65 Buy, 5 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 13 | Down: 10 | New: 11
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Piper Jaffray analyst Gene Munster reiterated an Overweight rating and boosted his price target on Amazon.com (NASDAQ: AMZN) to $400.00 (from $350.00), citing the company's long-term opportunity. Munster also provided a guide to near term results.

According to the analyst, the most useful sources of data intra-quarter are 1) comScore eCommerce, 2) commentary from Adobe marketing solutions, 3) ChannelAdvisor Amazon GMV acceleration trends, 4) commentary from IBM's holiday sales tracking team and 5) commentary from predominant retailers regarding online sales and Amazon itself.

"Based on the data points below, we believe the key take away that will emerge over the next 4 weeks is that Amazon will retain its
eCommerce market share despite growing competition from traditional retailers," he said.

  • ChannelAdvisor Indicates Amazon Accelerating Into Holiday Sales Period. "In October, comScore measured 32.4% y/y growth of Amazon SSS (which we believe represents around 3% of 3P GMV on Amazon)..."
  • Month To Date Overall eCommerce Trends Lag Slightly, Expect Acceleration "According to comScore and IBM, in the days leading up to Thanksgiving online retail sales decelerated, which we believe is a function of an early release of demand due to early "Black Friday" sales events from Amazon, 11Main, and others..."
  • eCommerce Expectations High For 2014 Holiday. "comScore projects 16% y/y growth in online sales, compared to 10% growth in the second quarter and 13% in the third quarter. This expectation compares to 13% from Forrester, 13.5% from Deloitte, and 16.6% from eMarketer..."

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 $333.57 yesterday.



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Piper Jaffray, Gene Munster