Amazon.com Rating Increased to Buy at UBS AG (AMZN)
Amazon.com (NASDAQ:AMZN) was upgraded by research analysts at UBS AG from a “neutral” rating to a “buy” rating in a report released on Friday, TheFlyOnTheWall.com reports. The firm currently has a $385.00 price objective on the stock. UBS AG’s price objective would suggest a potential upside of 17.05% from the company’s current price.
The analysts wrote, “Specific drivers for our upgrade: a) our expectations for a reacceleration of revenue growth and paid unit growth in Q4 and beyond (indicators being strong seasonal hiring trends, video game/console sales, easing paid unit comparisons, AWS); b) the globalization of its Kindle ecosystem; & c) its under-appreciated Advertising business.” The analyst commented that Amazon is expected to be a globally major player in eCommerce, technology hardware and software, cloud computing, third-party fulfillment, and targeted digital advertising. UBS analyzed strong seasonal hiring trends of an approximate 70,000 employees in the US, Kindle sales and launches, international contributions, hardware launches, and prospects for video game/console sales. Sheridan specifically examined video game and console sales, noting that even though 2013 sales have slowed, “we believe that there could be upside to Amazon’s Q4 Media segment sales given the long anticipated arrival of new consoles (Nov. 15th for the PS4 and Nov. 22nd for the Xbox One) and associated new game titles.”
A number of other analysts have also recently weighed in on AMZN. Analysts at Zacks reiterated an “outperform” rating on shares of Amazon.com in a research note to investors on Thursday. They now have a $373.00 price target on the stock. Separately, analysts at Wedbush reiterated a “hold” rating on shares of Amazon.com in a research note to investors on Monday, September 23rd. They now have a $330.00 price target on the stock. Finally, analysts at Telsey Advisory Group raised their price target on shares of Amazon.com from $370.00 to $400.00 in a research note to investors on Monday, September 23rd. They now have a “not rated” rating on the stock. One investment analyst has rated the stock with a sell rating, eight have issued a hold rating and thirty-one have assigned a buy rating to the stock. Amazon.com has an average rating of “Buy” and an average target price of $333.76.
Shares of Amazon.com (NASDAQ:AMZN) traded up 5.84% on Friday, hitting $328.931. 5,969,814 shares of the company’s stock traded hands. Amazon.com has a 52-week low of $218.18 and a 52-week high of $322.92. The stock has a 50-day moving average of $306.3 and a 200-day moving average of $285.0. The company’s market cap is $150.3 billion. Amazon.com also was the recipient of some unusual options trading activity on Friday. Stock traders purchased 70,417 call options on the stock. This is an increase of approximately 450% compared to the average daily volume of 12,793 call options.
Amazon.com (NASDAQ:AMZN) last announced its earnings results on Thursday, July 25th. The company reported ($0.08) EPS for the quarter, missing the Thomson Reuters consensus estimate of $0.05 by $0.13. The company had revenue of $15.70 billion for the quarter, compared to the consensus estimate of $15.73 billion. During the same quarter in the previous year, the company posted $0.01 earnings per share. The company’s revenue for the quarter was up 22.4% on a year-over-year basis. On average, analysts predict that Amazon.com will post $0.86 earnings per share for the current fiscal year.
Amazon.com, Inc (NASDAQ:AMZN), incorporated on May 28, 1996, serves consumers through its retail websites and focus on selection, price, and convenience.
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