MKM Partners Reiterates Buy on Amazon.com (AMZN) After Updating Estimates

MKM Partners reiterated a Buy rating and $800.00 price target on Amazon.com (NASDAQ: AMZN) after updating estimates to reflect a lower operating margin outlook in Q1 guidance.

Analyst Rob Sanderson commented, "We are updating our estimates to reflect a lower operating margin outlook in Q1 guidance, assuming a yr/yr decline in commerce margin through 2016. The stock is down 26% YTD (vs. NASDAQ down 13%) and underperforming large-cap peers FB and GOOGL by a large margin (up 1% and down 10% YTD respectively). While a gross margin downtick and soft operating income guidance for Q1 is somewhat disappointing, it is unimportant to the long term story in our view. While we do not expect market/macro concerns will ease in the near-term, we believe investors will have an outstanding opportunity to increase exposure to one of the very best secular growth stories in decades."

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 $502.13 yesterday.

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