UPDATE: Credit Suisse Upgrades Amazon.com to Outperform; Sum of Many Parts

Credit Suisse upgrades Amazon.com

from Neutral to Outperform and increases its price target from $190 to $270. Credit Suisse comments, "Our work suggests recent upward pressure on fulfillment center costs is driven by accelerated FC build outs in 2010/11 and growth in Fulfillment by Amazon (FBA), not a structural change in economics. ƒ In turn, we believe CSOI margin will stabilize in 2H12 and trend higher in FY13 driven by 1) gross margin upside from a growing mix of 3P, digital, and AWS revenue and 2) fulfillment productivity gains as new FC's opened over the past 2 years mature.ƒ As a result, we are raising our FY12 CSOI estimate by 12% to $1.7b and our longer term forecasts as well, and believe that our projections are above consensus." AMZN closed at $222.93 on Monday.