Deutsche Bank Maintains a 'Buy' on Amazon.com (AMZN); Prior Years' Strategic Investments Delivering Unit/Rev Growth Today

Deutsche Bank maintains a 'Buy' on Amazon.com (NASDAQ: AMZN) price target of $246.00.

Deutsche analyst says, "We remain buyers of shares of Amazon.com on the share price weakness following 3Q 2011 results. Amazon continues to invest in initiatives such as Kindle/Fire and 3P/FBA and fulfillment centers as unit and customer growth continue to come in at record levels. This near-term profit re-investment make sense to us as demand remains healthy, and new products such as the Fire and FBA should continue to stoke growth. While our profit estimates have been lowered NT, profit growth should resume in mid-2012."

"Given the continued momentum in unit/top line growth and the expected ramp in opex, we are adjusting our estimates, increasing revenue forecasts and lowering profitability. Our 2011 estimates are now revs of $48.6bn (vs $48.2bn), EBIT of $1.4bn (vs $1.8bn) and PF EPS of $2.14 (vs $2.94). We are also adjusting our 2012 revs/EBIT/PF EPS ests to $63.7bn/$1.7bn/$2.86 (vs $63.4bn/$2.6bn/$4.17)."

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 $227.15 yesterday.

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