UPDATE: Wedbush Initiates Coverage on Amazon.com with Neutral Rating, $330 PT on Market Share Gains, Limited Visibility

In a report published Wednesday, Wedbush analyst Michael Pachter initiated coverage on

with a Neutral rating and $330.00 price target. In the report, Wedbush noted, “We are initiating coverage of Amazon.com, Inc. with a NEUTRAL rating and a 12-month price target of $330. We arrive at our price target by assigning a P/E multiple of 50x to hypothetical FY:19 EPS of $8.38, discounted back for five years at a 5% compound annual rate. We are initiating with a NEUTRAL rating because we have little confidence in management's desire to provide investors with a road map for the company's strategy. We are not convinced that management will share sufficient details about its spending plans to allow us to accurately model profit growth, and we think that it could be several years before earnings grow sufficiently to justify its share price.” Amazon.com closed on Tuesday at $300.36.