Amazon.com's (AMZN) Price Target Raised to $900 at Goldman Sachs

(Updated - July 21, 2016 10:54 AM EDT)

Goldman Sachs maintained a Buy rating on Amazon.com (NASDAQ: AMZN) and raised its price target to $900.00 (from $790.00). Comments come ahead of Q2 results on July 28. Analyst Heath P. Terry said he expects results to show further revenue acceleration and margin expansion.

"We expect revenue of $29.4bn (+29.7% FX-neutral yoy vs. 29.0% in 1Q), vs. consensus of $29.5bn, with slight acceleration driven by the company’s continued investment in infrastructure and innovation to decrease delivery times and increase order frequency," said Terry.

The analyst added, "We expect adjusted operating income of $1.74bn, implying 5.9% margins, +126bps yoy vs. +259bps in 1Q. At 18X 2017E cash EPS vs. +23% FX-neutral sales growth in 2017E, we believe the risk/reward remains favorable as investments in web services, infrastructure, and logistics should result in additional share gains, cash flow growth, and continued high returns on investment."

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 $745.72 yesterday.

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