Amazon.com (AMZN) PT Raised to $3,750 at Citi; 'Favorite Internet Stock'

(Updated - February 17, 2021 9:48 AM EST)

Citi analyst Jason Bazinet raised the price target on Amazon.com (NASDAQ: AMZN) to $3,750.00 (from $3,600.00) while maintaining a Buy rating. Bazinet called AMZN their "Our Favorite Internet Stock."

"Though we fear the Street’s digital ad forecasts – including Amazon’s – are too high, Amazon has eight other positive attributes that keep us bullish," the analyst commented.

Bazinet highlighted 8 reasons to be bullish:

1) US eCommerce penetration rates are just 20% leaving ample room for growth.

2) Amazon is maintaining share within the US eCommerce market.

3) Around 70% of Amazon’s revenues come from the US. But, for the first time in 10 years, International dollar growth eclipsed US dollar growth.

4) Amazon is rapidly shifting from a B2C products company into a (higher margin) B2B services company.

5) With the exception of Ads, Street estimates look reasonable.

6) Street EBIT margins also appear achievable (particularly once COVID costs fade).

7) ROICs remain healthy and well above the firm’s WACC.

8) If Amazon’s equity does not move over the next three years, the firm will be valued at its lowest multiple since 2013 on both EV-EBITDA and levered FCF multiples.

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