Collins Stewart Starts Amazon.com (AMZN) at Neutral; Revenue Growth Balanced By Margin Pressure And Valuation

Collins Stewart initiates coverage on Amazon.com (NASDAQ: AMZN) with a Neutral. PT $180.

Collins analyst says, "Amazon has strong top-line growth prospects over the next 5-10 years, driven by share gains within e-Commerce, geographic and category expansion and high single digit or better e-Commerce growth rate. We also see upside in the short term on incremental revenues from Kindle device and e-books as well as share gains in physical Books market on competitor store closures...Stock fully valued- discounting both revenue growth and margin expansion...Any incrementally negative news (from economic slowdown, state sales taxes, Apple (Nasdaq: AAPL) gaining e-book share) will likely cause a stock decline, while the upside is already priced in."

For more ratings news on Amazon.com click here and for the rating history of Amazon.com click here.

Shares of Amazon.com closed at $209.49 yesterday.

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