UPDATE: UBS Assumes Amazon.com (AMZN) at Buy
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UBS analyst Kunal Madhukar assumes coverage on Amazon.com (NASDAQ: AMZN) with a Buy rating and a price target of $4,700.00.
The analyst comments "We expect Amazon shares to trend up ahead of 2H 2022 when we see revenue growth and margins driving higher estimate revisions and multiple expansion. Our category by category analysis of online penetration suggests Amazon can reach $400B in North America revenue in 2023, putting us 7% above consensus of $374B. On margins, slowing capacity builds and higher pricing of Prime / FBA can drive a greater-than-expected margin inflection in 2H 2022. Even without step-function price hikes, between 2021 and 2023, the company will benefit from an incremental $12B of AWS operating profit and $15B of incremental advertising operating income. We think faster growth and better margins will become more evident in 2H of 2022. We assume coverage with a Buy rating and target of $4,700."
Shares of Amazon.com closed at $3443.72 yesterday.
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