Stifel's Amazon Concerns To Consider
Amazon (NASDAQ: AMZN) was resumed with a Hold rating at Stifel Nicolaus. Stifel’s $330 price target is just a few cents from Amazon’s current share price.
“The company’s customer-centric approach to business is a strategy built upon the belief that duration (the long term) is all that matters… limiting the margin expansion opportunity in the near to intermediate term,” said analyst Scott Devitt.
Like many research houses, Stifel sees international eCommerce and web services driving growth moving forward. However, the note emphasizes that Amazon does not have first mover advantage in these markets.
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In order for Amazon shares to shoot higher in the long run, Devitt raises four points to consider: Has it already won the eCommerce battle? How will the company grow internationally? How will international margins expand? How big can AWS become?
The $330 price target was derived with a DCF and reflects, “a 18x 2015E EV/Adj. EBITDA multiple and an 74x 2015E Adj. PE multiple.”
Shares of Amazon were last trading at $329.68, up 3.2 percent.
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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