Market Overview

Analyst: Expect A Retail Bloodbath This Year, And Amazon Not Immune

Analyst: Expect A Retail Bloodbath This Year, And Amazon Not Immune
Related AMZN
Riot Blockchain Defends Pivot From Biotech To Crypto: 'Amazon Started Off Selling Books'
Did Walmart Meet Its Own Raised Profit Forecast? WMT Earnings On Tap
Should We Make 'Charitable Investments?' Is There Such A Thing? (Seeking Alpha)
Related WMT
Walmart, Target Are Susquehanna's Top Picks Ahead Of Retail Earnings Season
Upcoming Earnings: Hurricane Effects Still Trickling Through For Home Depot?
Retailers' Healthy Holiday Season Growth Figures Are An Illusion (Seeking Alpha)

Wolfe Research analyst Scott Mushkin just bucked the Street.

Mushkin downgraded, Inc. (NASDAQ: AMZN) from Outperform to Peer Perform and dropped its 2017 and 2018 EPS estimates to $6.52 and $9.92, respectively.

The average rating on the Street is a Buy, with three firms having initated coverage with bullish ratings this year (Loop Capital, Barclays and Aegis Capital), Neeham upgrading to Buy earlier this month and others maintaining their Buys.

In a Thursday note, asserting that Amazon “trees don’t grow to the sky overnight,” Wolf Research justified its rating with Amazon’s approaching price target and heightened competition through the end of 2017 from the likes of Wal-Mart Stores Inc (NYSE: WMT).

“Though we believe that AMZN will continue to transform goods commerce, we have to balance that with sharp equity appreciation and subdued n/t outlook,” Mushkin wrote. “In the next year we expect a retail bloodbath with increased competition from WMT, traditional consumable operators, and other broadline and specialty retailers. These dynamics lead us to forecast deceleration in Amazon sales growth vs our prior forecast.”

The Amazon Odd Duck

The downgrade barely dilutes Amazon’s 40 other Buy ratings, and the fair value offered ($930) has no bearing on the price targets spanning $847 and $1,250. Considering the stock is trading up $55.60 since the last week of March and is coming down from an all-time high of $923, many of the other targets, although accompanied by Buy ratings, represent price declines.

At the time of publication, the stock was trading up 0.3 percent at a rate of $901.94.

Related Link:

That Time No One Was Surprised: Amazon At Risk Of Antitrust Probe

Latest Ratings for AMZN

Feb 2018NomuraMaintainsBuyBuy
Feb 2018Credit SuisseMaintainsOutperformOutperform
Feb 2018JMP SecuritiesMaintainsMarket OutperformMarket Outperform

View More Analyst Ratings for AMZN
View the Latest Analyst Ratings

Posted-In: Scott Mushkin Wolfe ResearchAnalyst Color Downgrades Analyst Ratings Tech Best of Benzinga


Related Articles (AMZN + WMT)

View Comments and Join the Discussion!