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The Benchmark Company Sees Amazon.com as Primed for Long-Term Success

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In a report published Friday, The Benchmark Company analyst Daniel L. Kurnos reiterated a Buy rating and $500.00 price target on Amazon.com (NASDAQ: AMZN).

In the report, The Benchmark Company noted, “Amazon (AMZN-Buy, PT $500) reported better-than-expected revenue of $19.7 billion, up 26% y/y vs. consensus at 25%, primarily driven by outperformance at AWS and International. Operating income did come in $60 million below expectations, however, on increased investment in capacity, fulfillment and AWS, offsetting additional gross margin leverage thanks to continued 3P sales growth and AWS strength.

"Although the profit story didn't play out quite as well as expected in the quarter, we believe the revenue upside, strong 2Q revenue guidance and growing library of unique, Prime-only content, along with further digital and services expansion outside of the US, supports our long-term thesis. We think Amazon still remains in the early stages of global penetration with inherent margin expansion set to underpin a seemingly lofty valuation.”

Amazon.com closed on Friday at $337.15.

Latest Ratings for AMZN

DateFirmActionFromTo
Nov 2014Piper JaffrayMaintainsOverweight
Nov 2014NomuraInitiates Coverage onBuy
Oct 2014Morgan StanleyInitiates Coverage onOverweight

View More Analyst Ratings for AMZN
View the Latest Analyst Ratings

Posted-In: Daniel L. Kurnos The Benchmark CompanyAnalyst Color Reiteration Analyst Ratings

 

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