Amazon (AMZN) Results Not as Bad as Headlines Suggest, Baird Said; Buy Weakness

Baird analyst Colin Sebastian cut his price target on Amazon.com (NASDAQ: AMZN) to $340 from $400 following Q3 results but maintained an Outperform rating saying they were not as bad as the headlines suggest.

Sebastian commented, "Q3 not as bad as headlines suggest, growth outlook a yellow flag. Excluding one-time charges for the Fire Phone, Q3 CSOI was slightly above consensus on in-line revenues. However, slower growth implied by Q4 guidance is a yellow flag, and likely reflects macro headwinds (International), shift to 3P Marketplace and fewer device sales. We note that Amazon is typically quite conservative with Holiday outlooks. We are lowering our 12-month price target to $340, but recommend buying shares on the pullback."

The firm is revising 2015 revenue estimate to $106.4 billion from $109 billion, reflecting slower media category growth and a greater shift to third-party unit sales.

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 $313.18 yesterday.

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