Canaccord Genuity Starts Amazon.com (AMZN) at Hold; We See Low Margins Through 2012

December 7, 2011 8:19 AM EST Send to a Friend
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Price: $294.12 --0%

Rating Summary:
    30 Buy, 16 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 20 | Down: 18 | New: 16
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Canaccord Genuity initiates coverage on Amazon.com (NASDAQ: AMZN) with a Hold. PT $225.00.

Canaccord analyst, Michael Graham, said, "We believe Amazon’s dominance will continue, that its market value will increase significantly, and that its investments are smart. However, we believe management views the current period in the Internet’s evolution as “Land Grab 2.0” and suspect this will lead to a period of low margins that outlasts investor patience. We would rather get more aggressive with the stock closer to the end of the current investment phase."

"We estimate pro forma operating margin of 2.8% in 2012, down slightly from 2011. We believe this period of low margins will outlast investor patience, and we expect a volatile stock in 2012."

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 $191.99 yesterday.


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