Citi Removes Amazon.com (AMZN) from NAM Focus List, Keeps as Top-pick Across Internet Sector

Citi analyst Ronald Josey reiterated a Buy rating and $4,100.00 price target on Amazon.com (NASDAQ: AMZN).

The analyst comments "While we recognize the concerns a weaker consumer is likely to have on Amazon’s retail sales and the impact of greater overall costs, we also believe Amazon can gain greater share of retail sales in a more challenged macro environment, particularly as we prepare for Prime Day in July and as comps get materially easier in 2H22. And we believe Amazon can absorb much of the $6 billion of incremental costs from 1Q by the end of 2022. Given macro uncertainty and lack of near-term catalysts, we are removing Amazon from Citi’s NAM Focus List. But with shares down ~26% since earnings (vs. ~9% for the S&P 500) and currently trading at ~10x our ‘23E EV/EBITDA, we believe much of the risk is priced in, particularly for longer-term investors. Amazon remains a top-pick across the Internet sector and we reiterate our Buy rating and TP of $4,100."

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 $2146.38 yesterday.

You May Also Be Interested In

• Micron Technology (MU) Tops Q3 EPS by 15c, Guidance Misses Badly
• Amazon.com (AMZN) PT Lowered to $140 at Wolfe Research on Higher Input Costs
• JPMorgan Reiterates Amazon, Booking, and Uber as Top Internet Stocks to Own