Amazon.com, Inc. AMZN reported better than expected financial results on Thursday afternoon. Following the announcement, several Wall Street firms like JP Morgan, Janney Capital and Raymond James upgraded the stock. The latter upped its rating on the stock from Market Perform to Outperform, setting a price target of $485.
Related Link: Notable Analyst 'Hesitant On Price' Following Amazon Earnings
According to a report issued Friday, the upgrade was based on three main factors:
1) Widening margins: “expense growth appears to be moderating as operating margins expanded 60 bp y/y in 1Q and Amazon guided to ~80 bp expansion at the high end for 2Q”
2) Robust Amazon Web Services growth and better than expected operating and EBITDA margins of 14 percent and 50 percent, respectively, in 2014
3) Solid EGM segment revenue growth “continues with NA/International acceleration.”
Estimates
For 2015, Raymond James boosted its revenue/non-GAAP operating estimates increase by 1 percent and 18.5 percent, respectively. They now expect revenue of $103.968 billion.
Related Link: Here's Why Amazon's AWS Disclosure Hurts Cisco
On the opposite, the analysts trimmed their non-GAAP EPS estimate from $3.51 to $3.29.
For 2016, the revenue and non-GAAP operating income estimates were boosted by 2 percent and 26.5 percent. Revenues are now expected to come in at $125.141 billion, and non-GAAP EPS, at $6.69 (up from $5.59).
Edge Rankings
Price Trend
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
|---|
