Should Investors Buy The Pullback On Amazon?
In a note released Friday, Citigroup analyst Mark May explained why he believes "investors should consider the recent pullback in Amazon as an opportunity to buy one of the Internet sector's blue-chips."
May noted that, due to the 27 percent pullback since January 22, shares of Amazon (NASDAQ: AMZN) are now trading in-line with traditional retailers such as Wal-Mart despite growing four times faster with comparable margins. Additionally, May believes concern among investors about deceleration in unit growth is "misplaced."
Looking forward, May estimates calendar year revenue for Amazon's retail business of $84.3 billion and $100.6 billion in 2014 and 2015, respectively. Further, May estimates AWS/Other calendar year revenue of $6 billion in 2014 and $9.1 billion in 2015.
May currently rates Amazon as a Buy with a $414 price target. Shares have traded down $0.44 in Friday morning's session.
Latest Ratings for AMZN
|Sep 2016||Guggenheim Securities||Initiates Coverage on||Buy|
|Sep 2016||Maxim Group||Maintains||Buy|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.