UPDATE: BMO Capital Markets Initiates Coverage on Amazon.com at Market Perform

In a report published earlier today, BMO Capital Markets initiated coverage of Amazon.com, Inc.

with a Market Perform rating and a $260.00 price target. BMO Capital went on to say “We believe Amazon is poised to continue showing robust revenue growth for the foreseeable future as it adds product categories, expands into international territories, and builds out new business initiatives. We expect the company to spend heavily in fulfillment centers as well as technology and content to drive this robust growth, compressing operating margins in the short term as a result of these expenditures. Over time, we believe the company's new business initiatives can result in a period of sustained expanding operating margins as its revenue growth outpaces its expense growth.” Amazon.com, Inc. closed yesterday at $219.50.