Amazon Receives Price-Target Boost As Confidence In Growth Mounts
09 Jan 2018
Amazon.com (AMZN) received a price-target increase Monday on confidence it can generate continued strong growth in e-commerce, cloud services, online media and logistics.
Baird analyst Colin Sebastian raised his price target on Amazon to 1,310 from 1,100 and maintained a rating of outperform.
“Our analysis of Amazon’s fourth-quarter product selection seems to suggest stronger holiday sales, which combined with positive e-commerce data towards the end of December, provides some added confidence in our above-consensus fourth-quarter revenue estimate,” Sebastian wrote in a research note to clients.
Amazon recently touted its biggest holiday selling season ever, as it continues to grow quarterly sales at a double-digit rate.
Amazon shares climbed 1.4% to close at 1,246.87 on the stock market today, hitting a new high.
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Amazon has significant momentum heading into 2018 and could beat fourth-quarter revenue estimates if the expectations of a Wall Street analyst prove accurate.
Amazon reported third-quarter results on Oct. 26 that crushed earnings views and topped revenue estimates as shares took off. For the fourth quarter, Amazon said it expects revenue in the range of $56 billion to $60.5 billion, implying growth of 28% to 38% from the year-ago quarter.
Source: Investor’s business daily