UPDATE: Goldman Sachs Reiterates Buy Rating, Raises PT on Amazon.com
In a report published Wednesday, Goldman Sachs reiterated its Buy rating on Amazon.com (NASDAQ: AMZN), and raised its price target from $315.00 to $330.00.
Goldman Sachs noted, “Amazon reported 4Q revenues of $21,268mn (+22.0% yoy vs. 26.9% in 3Q), just below the mid-point of guidance and GAAP EPS of $0.21 versus our estimates $0.32, though GAAP EPS would have been $0.40 were it not for a higher tax rate. Adjusted CSOI margin was 3.2% versus our forecast of 2.5%. While the slower rate of growth in paid units sold and NA EGM revenues are areas to watch, the improvement in margins and the potential that 2012 marked the low point for the current margin cycle outweighs that concern. With user growth, the potential in AWS, and the long term margin opportunity across all segments, we continue to believe Amazon remains one of the strongest secular growth stories in the space.”
Amazon.com closed on Tuesday at $260.35.
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