Deutsche Bank Maintains a 'Buy' on Amazon.com (AMZN); Mixed 4Q, but Is Therer Operating Profit Upside Ahead?

Deutsche Bank maintains a 'Buy' on Amazon.com (NASDAQ: AMZN) price target lowered from $246 to $235.

Deutsche analyst says, "We are buyers of Amazon.com shares on the pullback, particularly as we think operating profit dollars could potentially surprise to the upside in coming quarters. Excluding the Kindle Fire, operating profit margins at 3.3% are flat vs. 2011 yet robust growth should help to create greater operating leverage in the near term. While investors may be concerned on the 4Q revenue miss, we think this is specific to business mix shift and weaker start for the Kindle Fire."

"For 1Q, we are now modeling revs/EBIT/EPS at $12.6bn/$177mn/$0.31 vs. $13.3bn/$258mn/$0.44 previously. Our 2012 estimates are now for revs of $61.0bn (down from $63.7bn), EBIT of $1.8bn (up from $1.7bn) and EPS of $2.91 (up from $2.86). We are also adjusting our 2013 revs/EBIT/EPS estimates to $76.0bn/$2.6bn/$4.49 (from $81.0bn/$2.7bn/$4.49)."

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 $194.44 yesterday.

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