Morgan Stanley Sees Holiday eCommerce as Bright Spot for Amazon.com

In a report published Tuesday, Morgan Stanley analyst Katy L. Huberty reiterated an Overweight rating and $420.00 price target on

. In the report, Morgan Stanley noted, “Near-term, the recent earnings reset and related pullback in investments -- along with low institutional ownership -- provide an attractive set-up with AMZN at 52-week lows. Medium-term, we believe that Amazon shares do not price appropriately Amazon's eCommerce business, which we see as the major driver of profit improvement near-term. Strong sales and improving mix in core markets are driving record margins and any pullback in investment should highlight this trend. We value the core eCommerce business at $420, in-line with our DCF.” Amazon.com closed on Monday at $306.64.