UPDATE: Argus Upgrades Amazon, Sees Massive 51% Upside
On Wednesday, Argus upgraded shares of Amazon (NASDAQ: AMZN) from Hold to Buy and set a price target of $480. The $480 price target represents a massive 51.2 percent upside from current levels.
The pullback off $400 to $305 “reflects a reversal in market momentum for internet-based tech stocks in general rather than weak company fundamentals...providing a favorable entry point,” said analyst Joseph Bonner.
Bonner's 2014 and 2015 GAAP earnings per share forecast is $2.34 and $3.31 respectively with a five year growth projection of 18 percent. The company “should continue to spend on infrastructure and growth initiatives in 2014,” said the analyst.
The Argus analyst is encouraged by the rebound in return on invested capital in the fourth quarter 2013, “rising 13% after being stuck in the low single digits over the last year.”
The stock is up 0.41 percent to $317.37 in Wednesday's trading.
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