Amazon (AMZN) PT Lifted to $650 at RBC Capital

RBC Capital analyst Mark Mahaney reiterated an Outperform rating and boosted his price target on Amazon (NASDAQ: AMZN) to $650.00 (from $500.00) following materially stronger than expected Q2 results.

Keys to the quarter, according to Mahaney: 1)Revenue Growth Acceleration… The Media, Electronics & General Merchandise, and AWS segments accelerated, thanks to continued Prime adoption, selection improvements, continued share gains and on relatively flat comps (ex-AWS); 2)Record High Gross Margin…expanding 390 bps Y/Y to 35%; 3)Highest Q2 Operating Margin in Five Years…; 4)Solid Metrics– 22% Unit Growth, 14% Active Customer growth to 285MM; 5)Very Good FCF-- $4.4B on a TTM basis, up 321% Y/Y.

The firm's 2016 Revenue estimate increases by 5% to $129B, while Operating Income estimate increases by 26% to $6.4B. They said this may still be conservative.

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 $482.18 yesterday.

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