Deutsche Bank Reiterates On Amazon
In a research note from Monday morning, Deutsche Bank analyst Ross Sandler offered a comment on the importance and valuability of Amazon's (NASDAQ: AMZN) Prime service. The analyst maintained a Buy rating and $400 price target.
Sandler suggested "Prime is arguably the most valuable and important growth trend for Amazon, representing around 50% of company GMV today."
With 32 million customers and "low contribution margin, the mix shift to Prime is critical to the AMZN investment thesis."
Analysts at Deutsche Bank think Amazon Prime creates value for the company by driving up customer loyalty, developing a competitive moat around the company's e-commerce business and increasing long-term value and revenue.
Sandler claimed Amazon to be favorable from a risk/reward standpoint. Deutsche Bank's price target is given by a 2015 EBITDA multiple of 18x compared to its three-year historic multiple of 21x.
Latest Ratings for AMZN
|Nov 2014||Piper Jaffray||Maintains||Overweight|
|Nov 2014||Nomura||Initiates Coverage on||Buy|
|Oct 2014||Morgan Stanley||Initiates Coverage on||Overweight|
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