Nomura Initiates Amazon at Buy

In a note out this Nomura analyst Robert Drbul starts Amazon

at Buy, with a Price Target of $410. With the stock within 16% of its 2014 and 12-month low, having declined by 18% year to date, underperforming the S&P 500/Internet Retail Index and the QNET Index, sentiment appears quite negative owing to concerns surrounding ongoing heavy investment and losses in hardware and international markets. he believe this pullback represents a buying opportunity for long-term investors. Four important views support his positive outlook: 1) we disagree with the general perception that management is indifferent toward stock price performance 2) AWS holds significant upside potential 3) increased Prime penetration should drive value and earnings leverage 4) any signs of abating investment spending should significantly alleviate profitability concerns and be a significant positive catalyst for the shares. Shares of AMZN are higher by 1.4 percent at 335 in pre-market trading.