Nomura Securities Maintains a 'Neutral' on Amazon.com (AMZN); Cutting Estimates After Q4 Results
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Price: $262.65 -0.94%
Rating Summary:
68 Buy, 7 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
68 Buy, 7 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Neutral' on Amazon.com (NASDAQ: AMZN) price target of $220.00.
Analyst, Brian Nowak, said, "AMZN reported 4Q:11 revenue that was 4% below us and 5% below the Street. 4Q CSOI of $462mn was ahead of us and the Street by $115mn and $175mn, respectively, but focus was on the revenue miss and disappointing 1Q:12 guide. AMZN guided for 1Q:12 revenue of $12bn-$13.4bn (Street at $13.4bn) and a CSOI margin from 0% to 2.2% (vs. us at 3.2% and Street at 2.5%). The negative forward revision train continues as this is the 7th straight quarter in which AMZN’s forward CSOI guidance has come in below the Street, and the 2nd consecutive quarter where the midpoint of revenue missed guidance. We are lowering our forward estimates for the slower media growth, higher fulfillment and higher tech & content spend. We are also raising our merchandise margins due to the growing mix of 3P. 2012E EPS goes from $1.37 to $1.15, and 2013E EPS from $1.94 to $1.76. We remain attracted to the long-term Amazon share-gaining story, but wait for a better entry point once we see the company doing a better job balancing growth and profitability."
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.
Analyst, Brian Nowak, said, "AMZN reported 4Q:11 revenue that was 4% below us and 5% below the Street. 4Q CSOI of $462mn was ahead of us and the Street by $115mn and $175mn, respectively, but focus was on the revenue miss and disappointing 1Q:12 guide. AMZN guided for 1Q:12 revenue of $12bn-$13.4bn (Street at $13.4bn) and a CSOI margin from 0% to 2.2% (vs. us at 3.2% and Street at 2.5%). The negative forward revision train continues as this is the 7th straight quarter in which AMZN’s forward CSOI guidance has come in below the Street, and the 2nd consecutive quarter where the midpoint of revenue missed guidance. We are lowering our forward estimates for the slower media growth, higher fulfillment and higher tech & content spend. We are also raising our merchandise margins due to the growing mix of 3P. 2012E EPS goes from $1.37 to $1.15, and 2013E EPS from $1.94 to $1.76. We remain attracted to the long-term Amazon share-gaining story, but wait for a better entry point once we see the company doing a better job balancing growth and profitability."
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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