Bernstein Reports Shares of Amazon Worth $451-$571 in Sum-of-Parts Valuation

In a report published Monday, Bernstein analyst Carlos Kirjner noted that shares of Amazon.com AMZN may be worth $451.00 to $571.00 in sum-of-the-parts valuation. Kirjner, who holds an Outperform rating on Amazon, wrote that price-to-sales ratio implies a $335.00 for retail business, or $442.0 by the discounted cash flow analysis. The analyst added that Amazon Web Services is worth $89.00 in a price-to-sales ratio, or $102.00 in discounted cash flow valuation. The sum-of-the-parts valuation additionally includes $27.00 cash per share. Kirjner emphasized that this analysis excludes the potential upside from the company's entry into fresh groceries and continued geographic expansion. Bernstein reiterated $420 price target on Amazon noting that this figure is “quite conservative.” Shares of Amazon closed at $372.06 on Friday.