Amazon (AMZN) PT Raised to $785 at UBS Amid Accelerating Flywheel
UBS analyst Eric Sheridan raised his price target on Buy-rated Amazon.com (NASDAQ: AMZN) to $785.00 (from $720.00) as 2016 begins with an accelerating flywheel (Prime + FBA).
Sheridan commented, "In early 2016, investors have feared multiple drivers of a renewed investment cycle by Amazon (Q4's fulfilment cost over-runs; logistics, content, India). However, counter to fears/noise, Amazon's strong Q1 CSOI result (& forward guide) should help alleviate investor concerns around the impacts stemming from any forward investments (which we believe will be reasonable, albeit potentially volatile quarter-to-quarter) within the context of Amazon's sizeable revenue opportunities (backdrop of both eCommerce & cloud computing). We continue to view AMZN shares as attractively valued relative to growth prospects, particularly when viewed on an ex-AWS basis (i.e., Amazon's retail business trading at just ~1.4x EV/Sales, based on our estimates if we value AWS at an EV of ~$112b)."
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Shares of Amazon.com closed at $602.00 yesterday.