Amazon.com (AMZN) Gets a Boost As Goldman Gets Convicted

Goldman Sachs added Amazon.com Inc. (NASDAQ: AMZN) to its Conviction Buy List on Monday as the analysts estimate a windfall from the expansion of the company’s Chinese business through 2011.

"We estimate Amazon's China business may add about $1 billion per year to its revenue growth from 2011, and China may contribute about 10 percent of its global revenue by 2015," James Mitchell, analyst for Goldman said in the firm’s statement.

The firm has raised its 2010 through 2013 revenue CAGR from 22 percent to 25 percent, ahead of the market consensus of 22 percent.

Goldman also boosting its price target on Amazon from $180 to $190, saying that the online retailer is the only "market-leading business in each of the world’s top 5 economies."

The addition of U.S. IPOs of online retailers like Dangdang and 360buy, which have market presence in China, will highlight the market strength of Amazon in the next 12 to 18 months according to the analysts.

Risks foreseen by Goldman in regards to Amazon moving forward include a continuation of the downturn in Europe, higher fulfillment costs and increased competition from Apple in the e-reader market.

Shares of Amazon are up 1 percent to $123.98 in midday market movement on Monday.

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