Amazon (AMZN) PT Raised to $740 at Morgan Stanley; Bull Case Moves to $860

Morgan Stanley analyst Brian Nowak reiterated an Overweight rating and boosted his price target on Amazon.com (NASDAQ: AMZN) to $740.00 (from $520.00) following blow-out earnings after the close.

Nowak noted "accelerating core business (in all 4 segments), improving profitability and AWS posting 80%+ growth speaks to the strength of Amazon's businesses and ability to continue to deliver top and bottom-line beats."

The analyst highlighted that top-line acceleration was across the board for the second straight quarter and only the third time in 9 years. "AMZN's business is inflecting around the globe as Y/Y constant currency rev growth in all four of its main retail
segments (N.A. Media, N.A. EGM, Int'l Media and Int'l EGM) accelerated... for the second straight quarter and only the third time in nine years (35 quarters)," Nowak commented. "Top-line gains continue to come from strong Prime subscriber growth (with int'l Prime subs growing faster than +50%), wallet share growth, FBA, and continued category expansion. The outlook for Prime growth is strong too, as Prime Day (7/15) saw more people sign up for Prime (free trial members) in any single day than in Amazon's history. If conversion metrics hold, this will be positive for long-term Prime sub growth and revenue dollar generation."

The firm has a new Bull case scenario is $860 per share.

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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