Amazon.com (AMZN) PT Lowered to $2,250 at Deutsche Bank

Deutsche Bank analyst Lloyd Walmsley lowered the price target on Amazon.com (NASDAQ: AMZN) to $2,250.00 (from $2,300.00) while maintaining a Buy rating, saying margin tailwinds should continue but all eyes on deceleration and 1Q guide.

Walmsley commented, "We like AMZN shares given positive holiday E-commerce trends, strong growth in the high-margin AWS and ad segments, and a more attractive valuation. We expect guidance for 1Q at the high end to show acceleration, though paid unit growth and online stores revenue likely continue to decelerate. For AWS, we take our estimates up slightly on revenue and margins. We look for deceleration to 41% ex-FX (from 46% last quarter) and 2ppts of AWS margin expansion, as comps become more difficult. We look for ad revs to grow +60% ex-accounting change and see scope for upside given a seasonally strong quarter on the back of improved product from a year prior. We increase our OI estimate."

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