Janney Lowering Margins For Amazon, Still Sees $230 Stock (AMZN)
Janney Capital Markets has a mixed call on Amazon.com Inc. (NASDAQ: AMZN) today. The firm is maintaining its Buy rating and its $230 price target objective on the online retail giant. Unfortunately, it is also trimming margins lower. Some summary…
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Janney Capital Markets has a mixed call on Amazon.com Inc. (NASDAQ: AMZN) today. The firm is maintaining its Buy rating and its $230 price target objective on the online retail giant. Unfortunately, it is also trimming margins lower. Some summary notes from the Janney research note are as follows:
- “We fully expect AMZN’s digital investments to be longer and deeper…”
- Amazon will continue to invest in content, devices and “hub” including the potential launch of a SmartPhone in the second half on top of a Fire tablet refresh in the first half
- “Lowering our 2012 CSOI margin by about 50 basis points ($300M to $1.73 billion) and 2013 by about 100 basis points ($783 million to $2.69 billion) as digital investments are expected to be longer and deeper…”
- Another positive: estimate the Kindle Fire installed base could reach 15 million units by end of fiscal year 2012
Amazon.com shares are down 1.5% at $179.95 on the day and the 52-week trading range is $160.59 to $246.71. The Thomson Reuters consensus price target is above $236.00 for Amazon.
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Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
