UPDATE: Morgan Stanley Initiates Coverage on Amazon.com with Overweight Rating, $420 PT on Focus on Core eCommerce Business

In a report published Wednesday, Morgan Stanley analyst Katy L. Huberty initiated coverage on Amazon.com AMZN with an Overweight rating and $420.00 price target. In the report, Morgan Stanley noted, “We view the earnings reset, low institutional ownership, and tempering of investments as providing a favorable set-up. Less spending on unprofitable projects will highlight improving eCommerce margins next year. We initiate at OW with a $420 PT; AMZN is being added to MS's Best Ideas.” Amazon.com closed on Tuesday at $295.59.