Canaccord Genuity Reiterates a 'Buy' on Amazon.com (AMZN); Investments Drive Revenue Growth
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Price: $262.65 --0%
Rating Summary:
68 Buy, 7 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 17 | New: 20
Rating Summary:
68 Buy, 7 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 17 | New: 20
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Canaccord Genuity reiterates a 'Buy' on Amazon.com (NASDAQ: AMZN) raises price target from $220 to $270.
Canaccord Genuity analyst Heath Terry, says, "Amazon’s Q2/11 results were above expectations, with revs ~$500M and GAAP EPS $0.06 ahead of consensus, though PFOI margin was down 230 bps y/y. While Q3’s revs guidance was $270M above Street estimates at the midpoint, PFOI guidance was ~$170M below. The ongoing build-out of distribution centers (over 15 in 2011 vs. 13 in 2010) and technology infrastructure (Figure 2) to meet the demands of the business’s growth should, we expect, gradually drive margins improvement beginning next year on the back of accelerating revenue growth. In our view, growing competitive advantages, significant market-expanding opportunities, and ancillary growth drivers like AWS, Kindle and forthcoming tablet more than offset the impact of lower margins near term."
"Our F2011 estimates for revs/PF EPS go from $47.2B/$3.76 to $48.9B/$3.42, while F2012 estimates shift from $62.6B/$5.55 to $67.9B/$5.28."
For more ratings news on Amazon.com click here and for the rating history of Amazon.com click here.
Shares of Amazon.com closed at $214.18 yesterday.
Canaccord Genuity analyst Heath Terry, says, "Amazon’s Q2/11 results were above expectations, with revs ~$500M and GAAP EPS $0.06 ahead of consensus, though PFOI margin was down 230 bps y/y. While Q3’s revs guidance was $270M above Street estimates at the midpoint, PFOI guidance was ~$170M below. The ongoing build-out of distribution centers (over 15 in 2011 vs. 13 in 2010) and technology infrastructure (Figure 2) to meet the demands of the business’s growth should, we expect, gradually drive margins improvement beginning next year on the back of accelerating revenue growth. In our view, growing competitive advantages, significant market-expanding opportunities, and ancillary growth drivers like AWS, Kindle and forthcoming tablet more than offset the impact of lower margins near term."
"Our F2011 estimates for revs/PF EPS go from $47.2B/$3.76 to $48.9B/$3.42, while F2012 estimates shift from $62.6B/$5.55 to $67.9B/$5.28."
For more ratings news on Amazon.com click here and for the rating history of Amazon.com click here.
Shares of Amazon.com closed at $214.18 yesterday.
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