UPDATE: Bank of America Reiterates Buy Rating, Lowers PT on Amazon.com on 1Q Prevew

In a report published Monday, Bank of America analyst Justin Post reiterated a Buy rating on Amazon.com

, but lowered the price target from $315.00 to $310.00. In the report, Post noted, “Amazon reports on 4/25. Based on industry data, FX trends, and eBay results, we expect rev. modestly below the Street at $16.2bn (guidance is $15.0bn-$16.6bn in rev. $0-$350 in CSOI) and around our $15.9bn. We are optimistic that Amazon's GP can meet/beat our est. of $4.25bn (26.7% GM) driven by 3P, advertising, AWS, and shipping fee increases. While we find it difficult to predict investment spending, we think Street will continue to believe in the LT return potential if US profit margins are stable/growing, GP growth remains robust (we est. 35% y/y), and unit growth remains healthy (we est. 28% y/y). Unit growth falling materially from 32% in 4Q is probably the biggest metric risk for results.” Amazon.com closed on Friday at $260.32.