Bank Of America Lowers Price Target On Amazon Amid Weak Guidance
In a note released early Friday morning, Bank of America analyst Justin Post lowered his price target from $420 to $400, but maintained his Buy rating on Amazon (NASDAQ: AMZN), despite weak profit guidance for the third quarter.
Post wrote, "The third quarter profit outlook was well below expectations and could leave the Street questioning if the company has gone too far with its multiple strategic investment initiatives."
He went on to say that with the disappointing third quarter outlook and without accelerating growth, Amazon could become a "show-me stock."
Despite expecting controversy over the company's investment profile, Post believes Amazon is in a nice position to take advantage of secular growth in eCommerce, could computing, and mCommerce.
The Street doesn't appear to share Post's confidence, as the stock saw an 11 percent drop to ~319.60 in Thursday's after-hours after posting its second quarter earnings. This negative sentiment has continued in Friday's pre-market session with the shares holding down around 10 percent from Thursday's close.
Latest Ratings for AMZN
|Jul 2014||B Riley||Downgrades||Buy||Neutral|
|Jul 2014||Raymond James||Downgrades||Outperform||Market Perform|
|Jul 2014||Canaccord Genuity||Maintains||Hold|
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.