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Collins Stewart Downgrades Amazon.com (AMZN) to Hold

July 24, 2009 8:48 AM EDT
AMZN Hot Sheet
Rating Summary:
    21 Buy, 11 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Collins Stewart downgrades Amazon.com (Nasdaq: AMZN) to Hold.

Collins analyst says, "We continue to like the Amazon story (value proposition & upside from Kindle/AWS) and view AMZN as a core Internet holding, but at current valuation levels (44x our '09 EPS and 17x our '09 EBITDA), we do not find material upside. Though our downgrade largely based on valuation, we are also somewhat cautious on Amazon due to the turnaround at EBAY's Marketplace, which in our view can negatively impact Prime memberships, growth for 3rd party merchants, and eventually active users traffic. What will make us more bullish? -- 1) if we see a material pullback in the shares, 2) margin ramp-up is better than expected, 3) Much better/faster ramp-up of Kindle/AWS/Zappos."

To see more analyst ratings on AMZN Click Here.

Amazon.com, Inc. (Amazon.com) offers services to consumer customers, seller customers and developer customers.

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