Skip to main content

Market Overview

Benchmark Reiterates, Sees "Meaningful Margin Expansion" for Amazon


In a report published Friday, Benchmark analyst Daniel Kurnos reiterated a Buy rating on (NASDAQ: AMZN) and raised the price target from $400.00 to $500.00 based on the expectations for meaningful margin expansion over the next few years.

On Thursday, Amazon reported fourth quarter and full year 2013 results. The company announced that revenue was up 26% y/y to $25.6 billion, missing estimates by approximately $400 million. Revenue was drastically hit in the EGM segment, highlighting aggressive and competitive big-box electronic discounts.

Management announced that first quarter 2014 revenue guidance will likely range from $18.2-$19.9 billion versus consensus estimate of $19.7 billion and Benchmark's $19.6 billion estimate. Operating income guidance was given in a range of -$200 million to +$200 million

Benchmark noted, “Amazon has outpaced the ecommerce market, retailers and even Internet leaders like Google (GOOG-Not Rated) meaningfully. While Amazon's revenue growth rate may moderate somewhat given the challenging economic environment and difficult comparisons, we think Amazon may see meaningful OIBDA margin expansion over the next few years despite ongoing investment to support strong unit volume growth.”

Kurnos revised estimates. The analyst expects $19.4 million in revenue, leading to 32% growth in OIBDA at $1.46 million. Kurnos estimates $144 million in operating income and $0.78 in adjusted EPS.

Shares of Amazon closed at $403.01 on Thursday, and is currently trading down 9.11% at $366.31.

Latest Ratings for AMZN

Feb 2021CitigroupMaintainsBuy
Feb 2021UBSMaintainsBuy
Feb 2021BenchmarkMaintainsBuy

View More Analyst Ratings for AMZN
View the Latest Analyst Ratings


Related Articles (AMZN)

View Comments and Join the Discussion!

Posted-In: Benchmark Daniel KurnosAnalyst Color Price Target Reiteration Analyst Ratings

Latest Ratings

IRIXRoth CapitalMaintains9.0
AMRSRoth CapitalMaintains33.0
VORBarclaysInitiates Coverage On56.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at