Amazon.com Inc.'s AMZN upcoming earnings report won't yield higher estimates, but 2015 catalysts could include market share growth and lower oil prices, an analyst said Friday.
Deutsche Bank's Ross Sandler maintained a Buy rating and $350 target on the e-commerce giant ahead of its fourth-quarter results expected January 29.
Sandler said shipping costs, which eat up 10 percent of revenue, should fall in the face of lower oil prices, while a "steady gain in market share" should prove soothing to investors.
Further, the company's web services segment will face easier comparisons starting in the second quarter while the company will uncover cost "rationalizations" relative to China and other segments, Sandler said.
Amazon shares are down more than 21 percent during the past year and Sandler said the "dramatic under performance" helps creates an attractive investment.
Sandler's "key rationale" for his Buy rating is long-term growth in membership and gross margin volume.
Analysts on average expect Amazon will post fourth-quarter earnings of $0.17 a share, down from $0.51 a year earlier.
Revenue us expected to grow 16 percent to $29.73 billion.
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