Canaccord Genuity Believes Amazon.com (AMZN) is Still in Investment mode But Raises Price Target to $400; Reiterates Hold

Canaccord Genuity reiterates a Hold rating on Amazon.com (NASDAQ: AMZN), and raised the price target to $400.00 (from $380.00), after revisiting margin drivers. Analyst Michael Graham believes that the company is still in investment mode.

Graham commented, "Amazon stock has been a dramatic outperformer this year, up 39% YTD versus the S&P up 2%. The primary drivers have been slightly more constructive margin commentary from the company, solid growth even against currency headwinds, and the breakout of AWS as a separate segment. We missed the big move, and have considered the merits of buying on strength. However, for now we remain HOLD rated based on the notion that margin expectations have expanded noticeably over the past two quarters, whereas in general we still believe the company is in investment mode and likely will be until some point in the future when international fulfillment expansion subsides. That said, we do see constructive signals in AWS growth, profitability, and potential valuation."

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 $429.92 yesterday.

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