JPMorgan Lifts PT on Amazon (AMZN) to $710; Accelerating Growth and Profit Upside
JPMorgan analyst Doug Anmuth reiterated an Overweight rating and boosted his price target on Amazon.com (NASDAQ: AMZN) to $710.00 (from $535.00) following strong Q2 results on accelerating growth and profit upside.
Anmuth commented, "Amazon delivered another quarter of very strong results with accelerating FXN revenue growth of 27% and significant CSOI outperformance as margin of 4.6% was the highest in more than 4 years. The primary drivers of upside were Int’l EGM, AWS, and margins in both NA and Int’l. We believe Amazon is now reaping the benefits of its recently heavy investments in Prime, category expansion, and fulfillment centers while also being more selective on new investments. As shown in AMZN’s better than expected 3Q guidance, the company has strong momentum heading into the back half with Prime Day success and still favorable comps related to Japan and AWS a year ago. Our '15/'16 revenue estimates increase by 2%, but our CSOI projections increase by 22% / 10%. We are establishing a Dec-16 price target of $710 (up from $535 for Dec-15 prior) based on our SOP analysis which assumes 0.8x 2017E Retail GMV of $297B and 16x 2017E AWS EBITDA of $5.2B."
FY 2015 EPS goes from $1.50 to $1.63 and FY 2016 EPS goes from $4.45 to $4.41.
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Shares of Amazon.com closed at $482.18 yesterday.