Nomura Securities Maintains a 'Neutral' on Amazon.com (AMZN); The Challenges Facing Improved Profitability

Nomura Securities maintains a 'Neutral' on Amazon.com (NASDAQ: AMZN) price target of $220.00.

Nomura analyst, Brian Nowak, said, "Investor focus this time of year often shifts to holiday headlines of robust year-on-year Black Friday Kindle sales growth or double-digit Cyber Monday sales increases. But in our view, Amazon’s long-term top-line and growth opportunities are not the controversies … we expect the company to continue taking share and driving overall e-commerce. Our larger concerns are around the margin “price” the company will pay for its growth as well as the long-term path toward improved profitability."

"We analyze Amazon’s business through a “mature vs investment” margin
lens and show that the mature business has indeed operated in the high-single digits in the past. While this analysis implies that part of Amazon’s current margin pressure is due to elective investment spending, our second analysis of Amazon’s declining “4-wall” margins in its core retail business underscores the margin challenges Amazon is likely to face as it continues growing and capturing share within e-commerce."

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 $188.39 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Active options: AMZN NFLX HTZ MSTR NBIS PLTR SNDK CRWV MSFT ONDS ORCL CSCO
• Freedom Broker Upgrades Lifeway Foods (LWAY) to Buy
• Cantor Fitzgerald Reiterates Overweight Rating on Merlin Labs (MRLN)