Morgan Stanley Sees Attractive Long-Term Risk/Reward for Amazon.com

In a report published Thursday, Morgan Stanley analyst Stephen Shin reiterated an Overweight rating and $435.00 price target on

. In the report, Morgan Stanley noted, “We model 21% revenue growth to $19.5B, inline with consensus estimates vs. guidance of 13-24% growth. We estimate ~18% product sales (i.e., 1P sales) growth and ~39% service sales growth (3P sales and AWS). FX should be a slight headwind this quarter (the company guided to 30 bps). We model CSOI of $538MM, towards the high end of guidance ($150MM-550MM), or a 20 bps increase to 2.8% of revenue, and believe that margins need to expand if revenue growth stays in the low 20s.” Amazon.com closed on Wednesday at $323.68.