Amazon Has A Laundry List Of Catalysts; JPMorgan Raises Price Target

Doug Anmuth, an Internet analyst at JPMorgan, commented in a research note on Friday that Amazon.com, Inc. AMZN's second-quarter earnings mark a "strong" execution across the board.

Anmuth stated that the quarterly results also reinforce his view that Amazon has reached a level of scale, efficiency and gross profit dollars that allows it to continue investing "aggressively" in its business model while simultaneously delivering material profits.

More importantly, Amazon's 6.9 percent CSOI margin was the highest it has been in over five years, and the company delivered its seventh consecutive quarter of profitability.

Related Link: UBS Raises Amazon Price Target To $900

Anmuth is keeping a close eye on the following two catalysts and events:

1. Amazon's third-quarter operating income guidance of $50 million to $650 million is below consensus expectation, but represents a "good problem" since Amazon is investing in 18 fulfillment centers.
2. Amazon's AWS segment remains a clear leader with an 85 to 90 percent market share and will continue to be "the dominant player in a much bigger market" even if it naturally loses some market share.

Bottom line, Amazon's "story has come together — with profitability" and the analyst maintained an Overweight rating on the stock with a price target boosted to $925 from a previous $908.

At time of writing, Amazon was up 1.74 percent on the day at $765.68.

Full ratings data available on Benzinga Pro.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!