Amazon (AMZN) Price Target Lifted to $510 at Goldman Sachs; Accelerating Revenue Growth

Goldman Sachs analyst Heath Terry reiterated a Conviction List Buy rating and boosted his price target on Amazon.com (NASDAQ: AMZN) to $510.00 (from $450.00) following Q1 results.

Terry commented, "Amazon reported 1Q revenue of $22.7bn (+15.1% yoy vs. +14.6% in 4Q), above consensus of $22.4bn. FX-neutral revenue growth accelerated to +22% from +18% in 4Q, driven by all segments. GAAP operating income was $255mn (1.1% margins), above consensus of $7mn and guidance of ($450)-50mn, making this the second quarter in a row of significant profit outperformance. Amazon reported 1Q AWS revenue of $1.6bn with 16.9% operating margins, far above our profitability expectations. 2Q revenue guidance of $20.6-$22.8bn brackets consensus of $22.1bn. We continue to believe Amazon’s investment in infrastructure, logistics, and web services is resulting in market share gains, cash flow growth, and continued high returns on invested capital."

The firm lowered FY 2015 EPS from ($0.20) to ($0.54), raised FY 2016 EPS from $2.49 to $2.61 and FY 2017 EPS from $5.70 to $5.78.

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 $389.99 yesterday.

You May Also Be Interested In

• Day One Biopharmaceuticals (DAWN) PT Raised to $38 at Jones Trading on OJEMDA approval, sees $900M peak sales
• Summit Insights Downgrades Silicon Labs (SLAB) to Hold, 'expect its stock to be an inline performer'
• Iflytek Co Ltd (002230:CH) PT Lowered to RMB50.50 at CLSA